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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2011	Jan. 31, 2012	Jun. 30, 2011
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Entity Registrant Name	QUESTCOR PHARMACEUTICALS INC
Entity Central Index Key	0000891288
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		63,677,031
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 1,046,712,000

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 88,469	$ 41,508
Short-term investments	121,680	73,324
Total cash, cash equivalents and short-term investments	210,149	114,832
Accounts receivable, net of allowance for doubtful accounts of $0 and $25 at December 31, 2011 and 2010, respectively	27,801	11,128
Inventories, net	5,226	3,726
Prepaid income taxes	6,940	3,532
Prepaid expenses and other current assets	3,391	1,864
Deferred tax assets	12,093	8,417
Total current assets	265,600	143,499
Property and equipment, net	1,970	872
Purchased technology, net	2,778	3,074
Goodwill		299
Deposits and other assets	56	65
Deferred tax assets	5,404	4,184
Total assets	275,808	151,993
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	5,503	3,869
Accrued compensation	11,590	4,158
Sales-related reserves	34,119	21,511
Other accrued liabilities	4,509	1,973
Total current liabilities	55,721	31,511
Lease termination, deferred rent and other non-current liabilities	261	355
Total liabilities	55,982	31,866
Commitments and contingencies (see Note 6)
Shareholders' equity:
Preferred stock, no par value, 7,500,000 shares authorized; none outstanding
Common stock, no par value, 105,000,000 shares authorized; 63,645,781 and 62,418,464 shares issued and outstanding at December 31, 2011 and 2010, respectively	94,976	74,809
Retained earnings	124,886	45,295
Accumulated other comprehensive income (loss)	(36)	23
Total shareholders' equity	219,826	120,127
Total liabilities and shareholders' equity	$ 275,808	$ 151,993

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts receivable	$ 0	$ 25
Preferred stock, no par value
Preferred stock, shares authorized	7,500,000	7,500,000
Preferred stock, shares outstanding	0	0
Common stock, no par value
Common stock, shares authorized	105,000,000	105,000,000
Common stock, shares issued	63,645,781	62,418,464
Common stock, shares outstanding	63,645,781	62,418,464

Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements Of Income [Abstract]
Net sales	$ 218,169	$ 115,131	$ 88,320
Cost of sales (exclusive of amortization of purchased technology)	12,459	8,013	7,017
Gross profit	205,710	107,118	81,303
Operating expenses:
Selling and marketing	56,728	31,519	19,347
General and administrative	17,743	10,279	10,603
Research and development	16,778	10,934	9,653
Depreciation and amortization	1,044	546	480
Impairment of goodwill	299
Total operating expenses	92,592	53,278	40,083
Income from operations	113,118	53,840	41,220
Other income:
Interest and other income, net	627	533	686
Gain on sale of product rights			225
Total other income	627	533	911
Income before income taxes	113,745	54,373	42,131
Income tax expense	34,154	19,302	15,502
Net income applicable to common shareholders	$ 79,591	$ 35,071	$ 26,629
Net income per share applicable to common shareholders:
Basic	$ 1.27	$ 0.56	$ 0.41
Diluted	$ 1.21	$ 0.54	$ 0.40
Shares used in computing net income per share applicable to common shareholders:
Basic	62,498	62,112	64,196
Diluted	66,010	64,741	66,257

Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Gain (Loss) [Member]	Total
Balances at Dec. 31, 2008	$ 84,028	$ (16,405)	$ 269	$ 67,892
Balances, shares at Dec. 31, 2008	65,970,653
Stock compensation for equity incentives and restricted common stock granted to consultants and employees	$ 3,066			3,066
Issuance of common stock pursuant to employee stock purchase plan	$ 548			$ 548
Issuance of common stock pursuant to employee stock purchase plan, shares	145,488			145,488
Issuance of common stock upon exercise of stock options	$ 454			$ 454
Issuance of common stock upon exercise of stock options, shares	569,631
Repurchase of common stock	$ (21,086)			(21,086)
Repurchase of common stock, shares	(4,866,600)
Cancellation of unvested restricted stock, shares	(87,487)
Cancellation of shares related to tax liability, shares	(5,076)
Income tax benefit realized from share-based compensation plans	$ 783			783
Comprehensive income (loss):
Net unrealized gain (loss) on investments			(283)	(283)
Net income		26,629		26,629
Total comprehensive income				26,346
Balances at Dec. 31, 2009	$ 67,793	10,224	(14)	78,003
Balances, shares at Dec. 31, 2009	61,726,609
Stock compensation for equity incentives and restricted common stock granted to consultants and employees	$ 3,739			3,739
Stock compensation for equity incentives and restricted common stock granted to consultants and employees, shares	30,000
Issuance of common stock pursuant to employee stock purchase plan	$ 732			$ 732
Issuance of common stock pursuant to employee stock purchase plan, shares	149,127			149,127
Issuance of common stock upon exercise of stock options	$ 1,210			$ 1,210
Issuance of common stock upon exercise of stock options, shares	517,936
Cancellation of shares related to tax liability, shares	(5,208)
Income tax benefit realized from share-based compensation plans	$ 1,335			1,335
Comprehensive income (loss):
Net unrealized gain (loss) on investments			37	37
Net income		35,071		35,071
Total comprehensive income				35,108
Balances at Dec. 31, 2010	$ 74,809	45,295	23	$ 120,127
Balances, shares at Dec. 31, 2010	62,418,464			62,418,464
Stock compensation for equity incentives and restricted common stock granted to consultants and employees	$ 7,326			$ 7,326
Stock compensation for equity incentives and restricted common stock granted to consultants and employees, shares	31,762
Issuance of common stock pursuant to employee stock purchase plan	$ 1,358			$ 1,358
Issuance of common stock pursuant to employee stock purchase plan, shares	90,650			90,650
Issuance of common stock upon exercise of stock options	$ 5,224			$ 5,224
Issuance of common stock upon exercise of stock options, shares	1,991,857			(1,991,857)
Repurchase of common stock	$ (11,453)			$ (11,453)
Repurchase of common stock, shares	(884,300)
Cancellation of shares related to tax liability, shares	(2,652)
Income tax benefit realized from share-based compensation plans	$ 17,712			17,712
Comprehensive income (loss):
Net unrealized gain (loss) on investments			(59)	(59)
Net income		79,591		79,591
Total comprehensive income				79,532
Balances at Dec. 31, 2011	$ 94,976	$ 124,886	$ (36)	$ 219,826
Balances, shares at Dec. 31, 2011	63,645,781			63,645,781

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash Flows From Operating Activities
Net income	$ 79,591	$ 35,071	$ 26,629
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense	7,326	3,739	3,066
Deferred income taxes	(4,896)	(1,029)	(290)
Amortization of investments	1,250	678	181
Depreciation and amortization	1,044	546	480
Impairment of goodwill	299
Loss on disposal of property and equipment	11
Gain on sale of product rights			(225)
Changes in operating assets and liabilities:
Accounts receivable	(16,673)	3,705	(4,415)
Inventories	(1,500)	(348)	(919)
Prepaid income taxes	(3,408)	(3,532)	3,316
Prepaid expenses and other current assets	(1,527)	(702)	(61)
Accounts payable	1,634	(9,052)	8,619
Accrued compensation	7,432	2,018	244
Sales-related reserves	12,608	6,589	3,097
Other accrued liabilities	2,526	(255)	526
Other non-current liabilities	(118)	(871)	(303)
Net cash provided by operating activities	85,599	36,557	39,945
Cash Flows From Investing Activities
Purchase of short-term investments	(162,301)	(106,647)	(61,557)
Proceeds from the sale and maturities of short-term investments	112,636	62,560	73,375
Purchase of property, equipment and leasehold improvements	(1,823)	(713)	(140)
Net proceeds from sale of product rights			225
Changes in deposits and other assets	9	645
Net cash (used in) / provided by investing activities	(51,479)	(44,155)	11,903
Cash Flows From Financing Activities
Income tax benefit realized from share-based compensation plans	17,712	1,335	783
Issuance of common stock, net	6,582	1,942	1,002
Repurchase of common stock	(11,453)		(21,086)
Net cash provided by / (used in) financing activities	12,841	3,277	(19,301)
Increase (decrease) in cash and cash equivalents	46,961	(4,321)	32,547
Cash and cash equivalents at beginning of year	41,508	45,829	13,282
Cash and cash equivalents at end of year	88,469	41,508	45,829
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	16	7	5
Cash paid for income taxes	25,278	$ 23,185	$ 11,317
Supplemental disclosure of non-cash investing and financing activities:
Capital lease obligation	$ 34

Organization And Summary Of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Organization And Summary Of Significant Accounting Policies [Abstract]

Organization and Summary of Significant Accounting Policies

1. Organization and Summary of Significant Accounting Policies

The Company

Questcor is a biopharmaceutical company whose primary product helps patients with serious, difficult-to-treat medical conditions. Our primary product is H.P. Acthar^® Gel (repository corticotropin injection), or Acthar, an injectable drug that is approved by the U.S. Food and Drug Administration, or FDA, for the treatment of 19 indications. Of these 19 indications, we currently generate substantially all of our net sales from three indications:

•

Multiple Sclerosis (MS): Acthar is indicated "for the treatment of acute exacerbations of multiple sclerosis in adults. Controlled clinical trials have shown H.P. Acthar Gel to be effective in speeding the resolution of acute exacerbations of multiple sclerosis. However, there is no evidence that it affects the ultimate outcome or natural history of the disease." We experienced significant growth in MS prescriptions in 2011 and currently intend to expand the size of our neurology sales force in 2012.

•

Nephrotic Syndrome (NS): Acthar is indicated "to induce a diuresis or a remission of proteinuria in the nephrotic syndrome without uremia of the idiopathic type or that due to lupus erythematosus." According to the National Kidney Foundation, nephrotic syndrome can result from several idiopathic type kidney disorders, including idiopathic membranous nephropathy, focal segmental glomerulosclerosis, IgA nephropathy and minimal change disease. Nephrotic syndrome can also occur due to lupus erythematosus. In this Form 10-K, the terms "nephrotic syndrome" and "NS" refer only to the proteinuria in nephrotic syndrome conditions that are covered by the Acthar label of approved indications. We experienced significant growth in NS prescriptions in the fourth quarter of 2011 and currently intend to expand the size of our nephrology sales force in the first half of 2012.

•

Infantile Spasms (IS): Acthar is indicated "as monotherapy for the treatment of infantile spasms in infants and children under 2 years of age." We continue to support this vulnerable patient population. We believe that a significant percentage of the $124 million in free drug we have provided through the National Organization of Rare Diseases, from September 2007 through December 31, 2011, has been used to treat IS.

Our other product is Doral^® (quazepam), which is indicated for the treatment of insomnia characterized by difficulty in falling asleep, frequent nocturnal awakenings, and/or early morning awakenings. We own the U.S. rights to and have modest sales of Doral.

Basis of Presentation

The consolidated financial statements include the accounts of Questcor and our wholly-owned subsidiary. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could materially differ from those estimates. Our significant estimates include our estimates for sales-related reserves, impairment of intangibles, tax liabilities and share-based compensation, among others.

Reclassifications

Certain comparative prior year amounts in the Consolidated Financial Statements and accompanying notes have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net income.

Fair Value of Financial Instruments

Our financial instruments include cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities. The carrying amounts of those financial instruments are considered to be representative of their respective fair values because of the short-term nature of those investments.

Cash Equivalents and Short-Term Investments

We consider highly liquid investments with maturities from the date of purchase of three months or less to be cash equivalents. We classify available-for-sale debt instruments with maturities at the date of purchase greater than three months as short-term investments.

We carry available-for-sale securities at fair value, with the unrealized gains and losses, if any, reported in a separate component of shareholders' equity. If we deem the decline in value to be other-than-temporary and we intend to sell such securities before their full cost can be recovered, we write down such securities to fair value and we charge the loss to net realized losses on investments. We use significant judgment in the determination of when an other-than-temporary decline in value has occurred. We evaluate our investment securities for other-than-temporary declines based on quantitative and qualitative factors. As of December 31, 2011 none of our investments had an other-than-temporary decline in valuation, and no other-than-temporary losses were recognized during the years ended December 31, 2011, 2010 and 2009. We base the cost of securities sold upon the specific identification method. We include realized gains and losses, if any, in the accompanying Consolidated Statements of Income, in Interest and other income, net.

Concentration of Risk

Financial instruments that subject us to a significant concentration of credit risk principally consist of cash and cash equivalents, short-term investments and accounts receivable. We invest our cash in high credit quality government and corporate debt instruments and believe the financial risks associated with these instruments are minimal.

We extend credit to our customers, which consist of CuraScript Specialty Distributor, or CuraScript SD, a specialty distributor for Acthar, and large drug wholesalers for the distribution of Doral. We have not experienced significant credit losses on our customer accounts. The relative share of our accounts receivable and gross product sales are as follows:


	Years Ended December 31,
% of Accounts Receivable	2011			2010
CuraScript SD		100	%		99	%
Other customers		—	%		1	%

		100	%		100	%


	Years Ended December 31,
% of Gross Product Sales	2011			2010			2009
CuraScript SD		100	%		99	%		99	%
Other customers		—	%		1	%		1	%

		100	%		100	%		100	%

Inventories

We state inventories, net of allowances, at the lower of cost or market value. Cost is determined by the first-in, first-to-expire method.

We review inventory periodically for slow-moving or obsolete status. We adjust our inventory if we do not expect to recover the cost of inventory. We would record a reserve to adjust inventory to its net realizable value: (i) when a product is close to expiration and we do not expect it to be sold, (ii) when a product has reached its expiration date or (iii) when we do not expect a product to be saleable. In determining the reserves for these products, we consider factors such as the amount of inventory on hand and its remaining shelf life, and current and expected market conditions, including management forecasts and levels of competition. We have evaluated the current level of inventory considering historical trends and other factors, and based on our evaluation, have recorded adjustments to reflect inventory at its net realizable value. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand, competition or other relevant factors differ from expectations. These estimates require us to assess the future demand for our products in order to categorize the status of such inventory items as slow-moving, obsolete or in excess-of-need. These future estimates are subject to the ongoing accuracy of our forecasts of market conditions, industry trends, competition and other factors. Differences between our estimated reserves and actual inventory adjustments have been immaterial, and we account for such adjustments in the current period as a change in estimate.

Property and Equipment

We record property and equipment at cost. We depreciate equipment and furniture using the straight-line method over their estimated useful lives (generally three to seven years) and leasehold improvements are amortized using the straight-line method over the estimated useful life of the asset or the lease term, whichever is shorter. We amortize equipment acquired under capital leases over the estimated useful life of the assets and include such amortization in depreciation expense.

Goodwill and Purchased Technology, net

Intangible and other long-lived assets consist of goodwill and purchased technology. We generated the goodwill from a 1999 merger and purchased technology relates to the direct costs associated with the acquisition of Doral in May 2006. Goodwill is not amortized, but instead is tested for impairment at least annually or whenever events occur or circumstances change that could indicate a possible impairment may have occurred. Any impairment loss recognized will be charged to operations. Purchased technology associated with the acquisition of products is stated at cost and amortized over the estimated life of the product.

If indicators of impairment exist, we assess the recoverability of the affected long-lived assets by determining whether the carrying value of such assets can be recovered through undiscounted future operating cash flows. If impairment is indicated, we measure the amount of such impairment by comparing the fair value to the carrying value. We believe the future cash flows to be received from the purchased technology will exceed the assets' carrying value, and accordingly, we have not recognized any impairment losses through December 31, 2011. However, during 2011, we determined the carrying value of the remaining goodwill was impaired and, therefore, charged the remaining balance to impairment of goodwill as of December 31, 2011.

Commitments and Contingencies

We are subject to routine claims and litigation incidental to our business. In the opinion of management, the resolution of such claims is not expected to have a material adverse effect on our operating results or financial position.

Comprehensive Income

Accounting Standards Codification 220 "Comprehensive Income", or ASC 220, requires reporting and displaying comprehensive income and its components, which includes net income and unrealized gains and losses on investments. Total comprehensive income for the years ended December 31, 2011, 2010 and 2009 was $79.5 million, $35.1 million and $26.3 million, respectively. The accumulated balance of unrealized gains (losses) on investments is disclosed as a separate component of shareholders' equity.

Income Taxes

We account for income taxes under the provisions of Accounting Standards Codification 740, "Income Taxes", or ASC 740. We make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes.

As part of the process of preparing our consolidated financial statements, we are required to estimate income taxes in each of the jurisdictions in which we operate. This process involves estimating our tax exposure under the most current tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in our consolidated balance sheets.

We regularly assess the likelihood that we will be able to recover our deferred tax assets, which is ultimately dependent on us generating future taxable income. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. If it is not considered "more likely than not" that we will recover our deferred tax assets, we will increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable. Changes in the valuation allowance based on our assessment will result in an income tax benefit if the valuation allowance is decreased and an income tax expense if the valuation allowance is increased.

As of December 31, 2011, we have recorded a liability for unrecognized tax benefits of $1.3 million related to various federal and state income tax matters. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of tax expense. For the years ended December 31, 2011, 2010 and 2009, interest and penalties were recorded for unrecognized tax benefits of $11,000, $166,000 and $36,000, respectively. As of December 31, 2011 and 2010, our accrual for interest and penalties on any unrecognized tax benefits was $126,000 and $204,000, respectively. We do not expect unrecognized tax benefits to change significantly over the next 12 months.

Revenue Recognition

We recognize revenue in accordance with Accounting Standards Codification 605, "Revenue Recognition-Products," or ASC 605, from sales of Acthar and Doral. Pursuant to ASC 605, we recognize revenue when we have persuasive evidence that an arrangement, agreement or contract exists, when title for our product and risk of loss has passed to our customers, the price we charge for our product is fixed or is readily determinable, and we are reasonably assured of collecting the amounts owed under the resulting receivable. For sales of both of our products, we do not require collateral from our customers. In order to ensure that patients who need Acthar are able to obtain it regardless of ability to pay, we also support the patient assistance programs administered by the National Organization of Rare Diseases, or NORD, and the Chronic Disease Fund. These and other patient-oriented support programs have now provided free drug with a commercial value of over $124 million to patients since September 2007 through December 31, 2011. We do not recognize any revenue from our free drug program.

In the U.S., our exclusive customer for Acthar is CuraScript SD. For our sales to CuraScript SD, a sale of Acthar occurs when CuraScript SD accepts a shipment of Acthar. We sell Acthar at a discount from our list price to CuraScript SD, which then sells Acthar primarily to approximately 12 specialty pharmacies, including CuraScript Specialty Pharmacy, or CuraScript SP, and to many hospitals. In addition to Acthar, we sell Doral to pharmaceutical wholesalers, who in turn sell Doral primarily to retail pharmacies and hospitals.

International sales of our products are immaterial.

Net Sales

The following table sets forth our net sales for the years ended December 31, 2011, 2010 and 2009, respectively (in thousands):


	Years Ended December 31,
	2011		2010		2009
Revenue	$	268,827	$	154,806	$	138,220

Less sales reserves:
Provision for Medicaid rebates		46,481		37,159		40,814
Provision for chargebacks		142		106		5,029
Provision for Coverage Gap Discount		348		—		—
Provision for Tricare rebates		1,691		1,202		3,530
Co-payment assistance and other		1,996		1,208		527

Total sales reserves		50,658		39,675		49,900

Net sales	$	218,169	$	115,131	$	88,320

We record net sales after establishing reserves for the following:

•

Medicaid rebates;

•

TRICARE retail program rebates;

•

Medicare Part D Coverage Gap Discount Program rebates;

•

Chargebacks due to other government programs;

•

Questcor-sponsored co-pay assistance programs;

•

Returns, which have historically been immaterial; and

•

Other deductions such as payment discounts.

We currently provide our products to Medicaid participants under an agreement with the Center for Medicare and Medicaid Services, or CMS. Under this agreement, states are eligible to receive rebates from us for Medicaid patients in accordance with CMS's regulations. For the years ended December 31, 2011, 2010 and 2009, the rebate amount equaled 100% of the Average Manufacturer Price, or AMP, for 2011 and 2010 and 110% of the AMP for 2009, which approximates the amount we charge to CuraScript SD. States have historically provided us with rebate invoices for their Medicaid Fee for Service reimbursements between 60 to 90 days after the end of the calendar quarter in which our products were provided. Certain states are taking longer to submit their initial rebate invoices for the Medicaid Managed Care Organization utilization that became rebate eligible on March 23, 2010, as a result of the enactment of the Health Care Reform Acts. We estimate the end of period liability and the sales reserve needed for these Medicaid rebates based on the following multi-step process:

•

Using a predictive model, we review national Medicaid statistics as well as internal information received from our Acthar reimbursement support center and from CuraScript SP for the most recent completed quarter to develop an estimate of future Medicaid rebate invoices that we expect to receive. This includes an estimate for future Medicaid Fee for Service and Medicaid Managed Care Organization rebate invoices.

•

We review the Medicaid rebate invoices received during the last 90 days and compare those invoices to the reserve that we had previously set at the end of the prior quarter. Based on this comparison and using the predictive model and other available information, which is updated quarterly, we estimate the remaining liability that we believe is still outstanding for periods prior to the most recently completed quarter.

•

Based on estimated end-of-quarter inventory held at CuraScript SD, all specialty pharmacies and hospitals, we calculate the expected future rebate liability for that portion of the estimated distribution channel inventory that will eventually be used to fill prescriptions for Medicaid patients.

Using similar processes, we estimate the end of period liability and the sales reserve needed for TRICARE retail program rebates, Medicare Part D Coverage Gap Discount Program rebates, or Coverage Gap Discount rebates (commonly referred to as the Medicare Part D "donut hole"), and chargebacks due to other government programs. The Coverage Gap Discount Program took effect on January 1, 2011. Approximately 25% of our sales for both MS and NS are to patients for whom Medicare is their primary insurance. We do not believe this program will have a material effect on our cash flows or results of operations.

Our resulting total sales reserve includes the sum of the Medicaid sales reserve, the TRICARE sales reserve, the Coverage Gap Discount reserve, the chargeback sales reserve, co-pay assistance payments, and payment discounts provided.

Significant judgment is inherent in the selection of assumptions and the interpretation of historical experience as well as the identification of external and internal factors affecting the determination of our reserves for Medicaid rebates and other government program rebates and chargebacks. We believe that the assumptions used to determine these sales reserves are reasonable considering known facts and circumstances. However, our Medicaid rebates and other government program rebates and chargebacks could materially differ from our reserve amounts because of unanticipated changes in prescription trends or patterns in the states' submissions of Medicaid claims, adjustments to the amount of product in the distribution channel, or if our estimates of the number of Medicaid patients with IS, MS and NS are incorrect. We have greater visibility on the future submission of Medicaid claims and the amount of product in the distribution channel for Acthar distributed to CuraScript SP (which is owned by CuraScript SD) than we have with respect to Acthar distributed through other specialty pharmacies. If actual Medicaid rebates, or other government program rebates and chargebacks are materially different from our estimates, we would account for such differences as a change in estimate in the period in which they become known. If actual future payments for such reserves exceed the estimates we made at the time of sale, our consolidated financial position, results of operations and cash flows may be negatively impacted.

Medicaid Rebates and the National Health Care Legislation

In March 2010, Congress passed, and the President signed into law, the Health Care Reform Acts. The Health Care Reform Acts contain a number of provisions that have impacted, both positively and negatively, our financial position, results of operations and cash flows. The provisions of the Health Care Reform Acts have reduced our rebate provided to states for prescriptions filled for Medicaid patients to 100% of the AMP, which approximates the amount we charge to CuraScript SD. Before the passage of the Health Care Reform Acts, the formula used to calculate the per vial rebate required us to rebate 110% of our AMP for Acthar. Effective March 23, 2010, the Health Care Reform Acts extended Medicaid rebates to Medicaid Managed Care Organization plans. Medicaid Managed Care Organization plans provide for the delivery of Medicaid health benefits and additional services through an arrangement between a state Medicaid agency and managed care organizations. Our provision for expected Medicaid rebate liability and our quarterly sales reserves have included an estimate for Medicaid Managed Care Organization usage since March 23, 2010.

TRICARE Retail Pharmacy Programs

The Department of Defense, or DoD, TRICARE Retail Pharmacy program became effective on May 26, 2009, pursuant to section 703 of the National Defense Authorization Act of 2008. This program and its regulations require manufacturers to pay rebates, retroactive to January 28, 2008, to the DoD on products distributed to TRICARE beneficiaries through retail pharmacies. The regulation further requires that pharmaceutical products paid for by the DoD through the TRICARE Retail Pharmacy program be subject to the Federal Ceiling Price program, which requires manufacturers to provide the DoD with a refund on pharmaceutical products utilized through the TRICARE Retail Pharmacy program. As a result, we established a sales reserve of $3.5 million for TRICARE rebates as of the year ended December 31, 2009 which covered 100% of our estimated liability for the time period January 28, 2008 through December 31, 2009. In late October 2011, the United States District Court for the District of Columbia issued its decision in Coalition for Common Sense in Government Procurement v. United States, No. 08-996 (D.C. Dist. Ct. Oct. 25, 2011) upholding the DoD's regulation. That case has been appealed to the United States Circuit Court for the District of Columbia. It is uncertain whether such appeal will be successful, but we believe that we have appropriately reserved for this matter.

Effective January 1, 2010, we entered into a new pricing agreement with the Veterans Administration, resulting in a rebate for pharmaceutical products utilized through the TRICARE Retail Pharmacy program during 2010 of $5,670 per vial, or a reduction of $14,865 from the previous per-vial rebate of $20,535. Effective January 1, 2011, our rebate decreased to $5,528 per vial. Effective January 1, 2012, the rebate for pharmaceutical products utilized through the TRICARE Retail Pharmacy program increased to $8,500.

Government Chargebacks

We permit certain other government-supported entities, such as those covered by our contract with the Veterans Administration or eligible Public Health Service, or PHS, 340B entities, to purchase Acthar from CuraScript SD based on a contractual amount. Because our payment terms with CuraScript SD are approximately 30 days, we include actual chargebacks taken plus an estimate applied to the units in channel when estimating the sales reserve related to government chargebacks. Sales to the Veterans Administration and PHS 340B entities are generally immaterial to our financial position as a whole.

Co-Pay Assistance Programs

We sponsor co-pay assistance programs for Acthar patients which are administered by the Chronic Disease Fund. We account for these co-pay assistance program payments as a reduction to our revenue.

Total Sales-related Reserves

At December 31, 2011 and 2010 sales-related reserves included in the accompanying Consolidated Balance Sheets were as follows (in thousands):


	Years Ended December 31,
	2011		2010
Medicaid rebates	$	29,874	$	17,384
Tricare rebates		4,095		4,125
Coverage Gap Discount Program rebates		100		—
Government chargebacks		40		2
Other discounts		10		—

Total	$	34,119	$	21,511

The following table summarizes the activity in the account for sales-related reserves for Medicaid rebates (in thousands):


	Years Ended December 31,
	2011			2010			2009
Balance at January 1	$	17,384		$	11,070		$	11,406
Actual Medicaid rebate payments for sales made in prior year		(9,104	)		(7,929	)		(8,300	)
Actual Medicaid rebate payments for sales made in current year		(24,887	)		(22,916	)		(32,850	)
Current Medicaid rebate provision for sales made in prior year		—			—			—
Current Medicaid rebate provision for sales made in current year		46,481			37,159			40,814

Balance at December 31	$	29,874		$	17,384		$	11,070

The following table summarizes the activity in the account for sales-related reserves for TRICARE rebates (in thousands):


	Years Ended December 31,
	2011			2010			2009
Balance at January 1	$	4,125		$	3,530		$	—
Actual Tricare rebate payments for sales made in prior year		(642	)		—			—
Actual Tricare rebate payments for sales made in current year		(1,079	)		(607	)		—
Current Tricare rebate provision for sales made in prior year		1			—			99
Current Tricare rebate provision for sales made in current year		1,690			1,202			3,431

Balance at December 31	$	4,095		$	4,125		$	3,530

Share-Based Compensation

We recognize compensation expense for all share-based awards made to employees and directors. The fair value of share-based awards is estimated at grant date using an option pricing model and the portion that is ultimately expected to vest is recognized as compensation cost over either (1) the requisite service period or (2) the performance period.

Since share-based compensation is recognized only for those awards that are ultimately expected to vest, we have applied an estimated forfeiture rate to unvested awards for the purpose of calculating compensation cost. These estimates will be revised, if necessary, in future periods if actual forfeitures differ from estimates. Changes in forfeiture estimates impact compensation cost in the period in which the change in estimate occurs.

We use the Black-Scholes option-pricing model to estimate the fair value of share-based awards. The determination of fair value using the Black-Scholes option-pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables, including expected stock price volatility, risk-free interest rate, expected dividends and projected employee stock option behaviors. We estimate the expected term based on the contractual term of the awards and employees' exercise and expected post-vesting termination behavior.

We use the intrinsic method to account for restricted stock awards. The restricted stock awards are valued based on the closing stock price on the date of grant and amortized ratably over the life of the award.

Additionally, we are required to disclose in our consolidated statements of cash flows the income tax effects resulting from share-based payment arrangements. We adopted the simplified method to calculate the beginning balance of the additional paid-in capital, or APIC, pool of excess tax benefits, and to determine the subsequent effect on the APIC pool and consolidated statements of cash flows of the tax effects of employee share-based compensation awards.

At December 31, 2011, there was $11.8 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a remaining weighted average vesting period of approximately 2.4 years.

Our share-based compensation plans are discussed further in Note 5. Preferred Stock and Shareholders' Equity.

Stock Repurchases

We account for common stock repurchases by charging the cost of shares acquired to the common stock account in the Consolidated Statements of Shareholders' Equity.

Net Income Per Share

Basic net income per share applicable to common shareholders is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and common equivalents shares, such as stock options and restricted stock outstanding during the period. Diluted earnings for our common shareholders per common stock considers the impact of potentially dilutive securities and excludes the impact of potential common shares related to our stock options and restricted stock in periods in which the option exercise or conversion price is greater than the average market price of our common stock during the period.

Basic net income per share also takes into consideration the two-class method. Under the two-class method, undistributed net income is allocated to common stock and participating securities based on their respective rights to share in dividends. Participating securities have not been material for all years presented.

The following table presents the amounts used in computing basic and diluted net income per share applicable to common shareholders for the years ended December 31, 2011, 2010 and 2009 and the effect of dilutive potential common shares on the number of shares used in computing dilutive net income per share applicable to common shareholders. Diluted potential common shares resulting from the assumed exercise of outstanding stock options and restricted stock are determined based on the treasury stock method (in thousands, except per share amounts).


	Years Ended December 31,
	2011		2010		2009
Net income applicable to common shareholders	$	79,591	$	35,071	$	26,629

Shares used in computing net income per share applicable to common shareholders:
Basic		62,498		62,112		64,196
Effect of dilutive potential common shares:
Stock options		3,497		2,614		2,050
Restricted stock		15		15		11

Diluted		66,010		64,741		66,257

Net income per share applicable to common shareholders:
Basic	$	1.27	$	0.56	$	0.41

Diluted	$	1.21	$	0.54	$	0.40

The following table presents the amounts excluded from the computation of diluted net income per share applicable to common shareholders for the years ended December 31, 2011, 2010 and 2009 as the inclusion of these securities would have been anti-dilutive (in thousands):

Years Ended December 31,

2011

2010

2009

Stock options

309

2,548

Segment Information

We have determined that we operate in one business segment.

Subsequent Events

We evaluated subsequent events that have occurred after December 31, 2011, and through the issuance date, and determined that there were no events or transactions occurring during this reporting period that require recognition or disclosure in our consolidated financial statements.

Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2011-04 "Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS," or ASU No. 2011-04. ASU No. 2011-04 is the result of the continuing convergence projects between the FASB, and the International Accounting Standards Board to create a common set of high quality global accounting standards. The amendments in ASU No. 2011-04 explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish standards or affect valuation practices outside of financial reporting. The amendment will be effective for interim and annual periods beginning after December 15, 2011. We plan to adopt ASU No. 2011-04 and do not anticipate a material effect on our financial position or results of operations.

In June 2011, the FASB issued Accounting Standards Update No. 2011-05 as amended by ASU 2011-12 which revised ASC 220 "Comprehensive Income." The revisions increase the prominence of items reported in other comprehensive income, or OCI, by eliminating the option to present OCI as part of the statement of changes in shareholders' equity. The amendments in this standard require that all non-owner changes in shareholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The ASUs do not change the current option for presenting components of OCI gross or net of the effect of income taxes, provided that such tax effects are presented in the statement in which OCI is presented or disclosed in the notes to the financial statements. Additionally, the standard does not affect the calculation or reporting of earnings per share. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and are to be applied retrospectively, with early adoption permitted. We plan to adopt the ASUs and do not anticipate a material effect on our financial position or results of operations.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

Balance Sheet Details

12 Months Ended

Dec. 31, 2011

Balance Sheet Details [Abstract]

Balance Sheet Details

2. Balance Sheet Details

Inventories

We state inventories, net of allowances, at the lower of cost (first-in, first-to-expire) or market. Inventories, net of allowances, at December 31, 2011 and 2010 consist of the following (in thousands):


	Years Ended December 31,
	2011		2010
Raw materials	$	4,841	$	3,065
Finished goods		385		819
Less allowance for excess and obsolete inventories		—		(158	)

	$	5,226	$	3,726

Property and Equipment

Equipment, furniture and leasehold improvements and related accumulated depreciation and amortization are as following (in thousands):


	Years Ended December 31,
	2011			2010
Laboratory equipment	$	8		$	8
Manufacturing equipment		740			692
Office equipment, furniture and fixtures		2,169			1,971
Leasehold improvements		946			420

		3,863			3,091
Less accumulated depreciation and amortization		(1,893	)		(2,219	)

	$	1,970		$	872

Total depreciation and amortization expense amounted to $0.7 million, $0.2 million and $0.2 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Short-Term Investments And Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Short-Term Investments And Fair Value Measurements [Abstract]

Short-Term Investments and Fair Value Measurements

3. Short-Term Investments and Fair Value Measurements

A summary of cash equivalents and short-term investments, classified as available-for-sale, and carried at fair value is as follows (in thousands):

December 31, 2011
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Loss)			Estimated Fair Value
Cash equivalents	$	6,423	$	—	$	—		$	6,423

Short-term investments:
Certificates of deposit	$	2,240	$	2	$	—		$	2,242
Corporate bonds		66,378		30		(69	)		66,339
U.S. Government-sponsored enterprises		42,764		6		(16	)		42,754
Municipal bonds		10,343		5		(3	)		10,345

	$	121,725	$	43	$	(88	)	$	121,680

December 31, 2010
Cash equivalents	$	22,258	$	—	$	—		$	22,258

Short-term investments:
Certificates of deposit	$	9,080	$	39	$	(4	)	$	9,115
Corporate Bonds		15,427		9		(5	)		15,431
Government-sponsored enterprises		41,983		12		(27	)		41,968
Municipal bonds		6,808		3		(1	)		6,810

	$	73,298	$	63	$	(37	)	$	73,324

The amortized cost and fair value of available-for-sale securities at December 31, 2011, by contractual maturity, are as follows (in thousands):


	Amortized Cost		Estimated Fair Value
Due in one year or less	$	66,656	$	66,643
Due after one through two years		55,069		55,037

Total available-for-sale securities	$	121,725	$	121,680

As of December 31, 2011, the average contractual maturity of our short-term investments was approximately fourteen months.

As of December 31, 2011 , we had the following available-for-sale securities that were in an unrealized loss position but were not deemed to be other-than-temporarily impaired (in thousands):


	Less Than 12 Months					12 Months or Greater
	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Certificates of deposit	$	—		$	480	$	—		$	—
Corporate bonds		(35	)		22,258		(34	)		10,263
U.S. Government-sponsored enterprises		(2	)		6,148		(14	)		23,981
Municipal bonds		(3	)		4,000		—			—

Total	$	(40	)	$	32,886	$	(48	)	$	34,244

The gross unrealized losses reported above for December 31, 2011 were caused by general fluctuations in market interest rates from the respective purchase date of these securities through December 31, 2011. No significant facts or circumstances have occurred to indicate that these unrealized losses are related to any deterioration in the creditworthiness of the issuers of the marketable securities we own. Based on our review of these securities, including our assessment of the duration and severity of the related unrealized losses, we have not recorded any other-than-temporary impairments on these investments.

Fair Value Measurements

We account for fair value measurements under Accounting Standards Codification 820 "Fair Value Measurements and Disclosures", or ASC 820, which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

•

Level 1 – Quoted prices in active markets for identical assets or liabilities.

•

Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

•

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

We have segregated all assets and liabilities measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. As of December 31, 2011, all of our assets and liabilities are valued using Level 1 inputs.

Assets measured at fair value on a recurring basis are summarized below (in thousands):


	Basis of Fair Value Measurements
	Balance at December 31, 2011		Level 1		Level 2		Level 3
Cash equivalents	$	6,423	$	6,423	$	—	$	—
Certificates of deposit		2,242		2,242		—		—
Corporate bonds		66,339		66,339		—		—
Government-sponsored enterprises		42,754		42,754		—		—
Municipal bonds		10,345		10,345		—		—

Total	$	128,103	$	128,103	$	—	$	—

Investment securities are exposed to various risks, such as interest rate, market and credit. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is possible that changes in these risk factors in the near term could have an adverse material impact on our results of operations or shareholders' equity.

Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). There were no assets or liabilities measured at fair value on a nonrecurring basis during the periods ended December 31, 2011 and 2010, other than goodwill associated with a 1999 transaction, which was impaired during the year ended December 31, 2011 resulting in a net realizable value of zero.

Purchased Technology And Goodwill

12 Months Ended

Dec. 31, 2011

Purchased Technology And Goodwill [Abstract]

Purchased Technology and Goodwill

4. Purchased Technology and Goodwill

Purchased technology consists of the following (in thousands):


	Years Ended December 31,
	2011			2010
Purchased technology	$	4,386		$	4,386
Less accumulated amortization		(1,608	)		(1,312	)

Total	$	2,778		$	3,074

Purchased technology at December 31, 2011 and 2010 consists of our acquisition costs for Doral. Amortization expense for purchased technology totaled $0.3 million for each of the years ended December 31, 2011, 2010 and 2009, respectively. As of December 31, 2011 and 2010, we determined that purchased technology was not impaired and will continue to monitor the carrying value of the remaining purchased technology through the annual impairment test.

Goodwill consists of the following (in thousands):


	Years Ended December 31,
	2011			2010
Goodwill	$	1,023		$	1,023
Less accumulated amortization (pre-2011 amortization) and impairment		(1,023	)		(724	)

Total	$	—		$	299

As of December 31, 2011, we determined the carrying value of the remaining goodwill impaired and, therefore, charged the remaining balance to impairment of goodwill.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Preferred Stock And Shareholders' Equity

12 Months Ended

Dec. 31, 2011

Preferred Stock And Shareholders' Equity [Abstract]

Preferred Stock and Shareholders' Equity

5. Preferred Stock and Shareholders' Equity

Preferred Stock

At December 31, 2011 and 2010, we had 7,500,000 shares of Preferred Stock authorized, no par value, and no shares of Preferred Stock were issued and outstanding.

Common Stock

The holders of outstanding shares of our common stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by the board of directors out of assets legally available therefore, subject to the payment of preferential and participating dividends with respect to any preferred stock that may be outstanding. In the event of our liquidation, dissolution and winding-up of our business, the holders of our outstanding common stock are entitled to share ratably in all assets available for distribution after payment of all our liabilities, subject to the rights of any outstanding shares of preferred stock. The holders of our common stock are entitled to one vote per share.

On February 29, 2008, our board of directors approved a stock repurchase program that provides for the repurchase of up to 7 million of our common shares. On May 29, 2009, our board of directors increased the stock repurchase program by an additional 6.5 million shares. Stock repurchases under this program may be made through either open market or privately negotiated transactions in accordance with all applicable laws, rules and regulations. Through December 31, 2011, we had repurchased 9.2 million common shares under our stock repurchase program for $48.1 million, at an average price of $5.21 per share. Additionally, we had purchased 6.2 million shares of our common stock outside of our plan for a total of $30.4 million through December 31, 2011 at an average price of $4.93 per share for a total repurchase value of $78.5 million. As of December 31, 2011, there are 4.3 million shares authorized remaining under our stock repurchase plan.

Employee Stock Purchase Plan

Our 2003 Employee Stock Purchase Plan, or ESPP, provides our employees the opportunity to purchase our common stock through accumulated payroll deductions. The ESPP was originally adopted by the Board of Directors on January 24, 2003 and approved by our shareholders on May 12, 2003. The ESPP was amended by the Board of Directors on February 27, 2006 and was approved by our shareholders on May 18, 2006.

Currently the ESPP has 3,500,000 shares available for issuance, including shares previously issued. In April 2008, our Board further amended the ESPP to reduce the maximum offering period under the ESPP from 27 months to 6 months and to no longer allow employees the ability to increase their payroll contributions to the ESPP during an offering period.

The purpose of the ESPP is to provide all of our employees with an opportunity to purchase our common stock through accumulated payroll deductions. Any person who is employed by us on the offering date, for at least 20 hours per week and more than five months in any calendar year, is eligible to participate in the ESPP. Under the ESPP, eligible employees could have up to 15% of their earnings withheld, subject to certain maximums, to be used to purchase shares of our common stock. Generally, the purchase price per share at which shares are sold under the ESPP is the lower of 85% of the fair market value of a share of our common stock on the first day of each offering period or 85% of the fair market value of a share of our common stock on the last day of each three month purchase period. December 31, 2011, 2010 and 2009, 90,650, 149,127 and 145,488 shares, respectively, had been issued to participants.

ESPP activity during 2011 was as follows:


	Number of Shares			Weighted- Average Fair Value
Available at December 31, 2010		264,760
Purchases		(90,650	)	$	14.98
Shares added to the Plan		600,000

Available at December 31, 2011		774,110

We use the Black-Scholes option–pricing model to estimate the fair value of the option element related to employees' purchases under the ESPP included in the total share-based compensation expense recorded for the years ended December 31, 2011, 2010 and 2009. The determination of fair value using the Black-Scholes option-pricing model is affected by our stock price as well as similar assumptions used to value our stock-based awards.

•

Volatility is based on the historical volatility of our common stock.

•

Interest rate is based on the U.S. Treasury yield.

•

Expected term represents the life of the option element.

•

Expected dividend yield is zero, as we are currently not paying dividends.


	Years Ended December 31,
	2011			2010			2009
Weighted average volatility		53	%		54	%		71	%
Risk-free interest rate		0.1	%		0.1	%		0.1-0.3	%
Expected term (in years)		0.25			0.25			0.25
Expected dividend yield		—	%		—	%		—	%

Stock Compensation Plans

Stock Options

We have options outstanding to purchase shares of our common stock under the following plans:

•

2006 Equity Incentive Award Plan that provides for the grant of equity incentives to employees, members of our board of directors, and consultants;

•

1992 Employee Stock Option Plan that provided for the grant of stock options to employees, members of our board of directors, and consultants; and

•

2004 Non-Employee Directors' Equity Incentive Plan that provides for the grant of equity incentives to non-employee members of our board of directors.

In May 2006, our shareholders approved the adoption of the 2006 Equity Incentive Award Plan. Upon the adoption of the 2006 Equity Incentive Award Plan, we ceased grants under our 1992 Employee Stock Option Plan. The 2006 Equity Incentive Award Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock grants, unrestricted stock grants, stock appreciation rights, restricted stock units and dividend equivalents. Equity incentives under the 2006 Equity Incentive Award Plan and the 1992 Employee Stock Option Plan generally include four year vesting periods, an exercise price that equals the fair market value of our common stock on the date of grant, and maximum terms of ten years. Restricted stock awards entitle the recipient to full dividend and voting rights. Non-vested shares are restricted as to disposition and subject to forfeiture under certain circumstances. In May 2011, the shareholders approved an amendment to the 2006 Equity Incentive Award Plan to increase the number of shares of common stock authorized for issuance by 3,500,000 shares. The aggregate number of shares of common stock authorized for issuance under the 2006 Equity Incentive Award Plan is 9,750,000 shares.

Our 2004 Non-Employee Directors' Equity Incentive Plan provides for the granting of 25,000 stock options to purchase common stock upon appointment as a non-employee director and 15,000 stock options each January thereafter for continuing service upon reappointment. Such stock option grants vest over four years. In addition, 10,000 stock options are granted to members of one or more committees of the board of directors and an additional 7,500 stock options to the chairs of one or more committees. Such stock option grants are fully vested at the time of grant. As originally approved by shareholders, such option grants had an option exercise price equal to 85% of the fair market value on the date of grant. However, in May 2004, our board of directors approved an amendment to the 2004 Non-Employee Directors' Equity Incentive Plan to provide that all option grants be made at an exercise price equal to 100% of the fair market value of our common stock on the date of grant. The maximum term of the stock options granted is ten years. Under the terms of the 2004 Non- Employee Directors' Equity Incentive Plan, 1,250,000 shares of our common stock were authorized for grant. In May 2011, with the amendment of the 2006 Equity Incentive Award Plan, we ceased grants under our 2004 Non-Employee Directors' Equity Incentive Plan. All future grants to non-employee directors will be issued under the 2006 Equity Incentive Award Plan out of authorized shares.

As of December 31, 2011, a total of 6,015,705 shares of common stock were reserved for issuance under both the 2006 Equity Incentive Award Plan and the 2004 Non-Employee Directors' Equity Incentive Plan. A summary of our stock option activity and related information during 2011 follows:


	Stock Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
						(In years)		(In thousands)
Outstanding at December 31, 2010		6,286,436		$	4.43
Granted		1,460,100			16.89
Exercised		(1,991,857	)		2.62
Forfeited or expired		(290,889	)		10.69

Outstanding at December 31, 2011		5,463,790		$	8.08		7.47	$	183,077,408

Options vested and expected to vest at December 31, 2011		5,457,692		$	8.07		7.47	$	182,905,670

Exercisable at December 31, 2011		2,915,136		$	4.71		6.49	$	107,494,919

Aggregate intrinsic value is the sum of the amounts by which the quoted market price of our stock exceeded the exercise price of the stock options at December 31, 2011, 2010 and 2009 for those stock options for which the quoted market price was in excess of the exercise price ("in-the-money options"). The total intrinsic value of stock options exercised was $57.5 million, $3.7 million and $2.6 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Restricted Stock Awards

During the years ended December 31, 2011, 2010 and 2009, we granted a total of 61,762 shares of restricted common stock, respectively, to employees under the 2006 Equity Incentive Award Plan. Restrictions on these shares will expire and related charges are being amortized as earned over the vesting period of four years.

We base the amount of unearned compensation recorded on the market value of the shares on the date of issuance. Expenses related to the vesting of restricted stock were $163,000, $50,000 and $11,000 for the years ended December 31, 2011, 2010 and 2009, respectively. Total fair value of awards vested were $115,000, $144,000 and $67,000 for the years ended December 31, 2011, 2010 and 2009, respectively. At December 31, 2011, there was approximately $815,000 of unamortized compensation cost related to restricted stock awards, which we expect to recognize ratably over the vesting period of four years.

Restricted stock activity during 2011 was as follows:


	Number of Shares			Weighted- Average Fair Value
Non-vested shares at December 31, 2010		30,000		$	5.02
Granted		31,762		$	27.28
Vested		(7,500	)	$	5.02
Forfeited or expired		—			—

Non-vested shares at December 31, 2011		54,262		$	18.05

Fair Value of Stock-Based Awards

The weighted average fair value of equity instruments granted during 2011, 2010 and 2009 was as follows:


	Weighted Average Fair Value
	2011		2010		2009
Stock options	$	16.89	$	7.15	$	5.45
ESPP Purchases		14.98		4.91		3.76
Restricted Stock		27.28		5.02		—

As of December 31, 2011, $12.6 million of total unrecognized compensation cost related to unvested grants of stock options and awards of restricted stock is expected to be recognized over a weighted-average period of 2.4 years.

We use the Black-Scholes option–pricing model to estimate the fair value of stock-based awards. The determination of fair value using the Black-Scholes option-pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables, including expected stock price volatility, risk-free interest rate, expected dividends and projected employee stock option exercise behaviors.

•

Volatility is based on the historical volatility of our common stock. During 2010, we reviewed our methodology for calculating volatility and, in doing so we shortened the look-back period to represent the time period following the implementation of our Acthar-centric pricing strategy in late 2007. This resulted in a lower volatility that, we believe, is a better representation of our current market condition.

•

Interest rate is based on the U.S. Treasury yield.

•

Expected term was based on the historical experience of similar awards, giving consideration to the contractual terms of the share-based awards, vesting schedules and the expectations of future employee behavior.

•

Expected dividend yield is zero, as we are currently not paying dividends.

The total number of stock option awards expected to vest is adjusted by estimated forfeiture rates. The weighted average assumptions used for the years ended December 31, 2011, 2010 and 2009 and the resulting estimates of weighted average fair value per share of options granted during those periods are as follows:


	Years Ended December 31,
	2011			2010			2009
Volatility		61	%		65	%		83	%
Interest rate		0.5-2.4			1.0-2.1			1.9-2.2
Forfeiture rate		0.22	%		11.95	%		11.95	%
Expected term (in years)		3.4			4.4			4.3
Expected dividend yield		—			—			—

Share-based compensation expense related to employees and non-employee members of the board of directors has been included in the accompanying Consolidated Statements of Income for the years ended December 31, 2011, 2010 and 2009 as follows (in thousands):


	Years Ended December 31,
	2011		2010		2009
Selling and marketing	$	4,236	$	952	$	719
General and administrative		1,884		1,832		1,699
Research and development		1,206		955		623
Total share-based compensation expense		7,326		3,739		3,041

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph d

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
-Section B
-Paragraph 7, 11A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 1
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-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=6521494

Reference 22: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Indemnifications, Commitments And Contingencies

12 Months Ended

Dec. 31, 2011

Indemnifications, Commitments And Contingencies [Abstract]

Indemnifications, Commitments and Contingencies

6. Indemnifications, Commitments and Contingencies

Indemnifications

As permitted under California law and in accordance with our Bylaws, we indemnify our officers and directors for certain events or occurrences while the officer or director is or was serving at our request in such capacity. The potential future indemnification limit is to the fullest extent permissible under California law; however, we have a director and officer insurance policy that limits our exposure and may enable us to recover a portion of any future amounts paid. We believe the fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. Accordingly, we had no liabilities recorded for these agreements as of December 31, 2011 and 2010.

Employment Agreements

We have entered into employment and severance agreements with our corporate officers that provide for, among other things, base compensation and/or other benefits in certain circumstances in the event of termination or a change in control. In addition, certain of the agreements provide for the accelerated vesting of outstanding unvested stock options upon a change in control.

Leases

We lease office facilities under various operating lease agreements, with remaining terms that extend to October 2015. We have also entered into automobile and office equipment leases, with remaining terms that extend to 2015. As of December 31, 2011, we have made approximately $56,000 in cash deposits related to operating leases. Provisions of the facilities leases provide for abatement of rent during certain periods and escalating rent payments during the term. Rent expense is recognized on a straight-line basis over the term of the lease. Accordingly, rent expense recognized in excess of rent paid is reflected as deferred rent. Rent expense on the facilities and equipment during 2011, 2010 and 2009 was $1.0 million, $0.5 million and $1.1 million, respectively.

Future annual minimum payments under operating leases are as follows (in thousands):


Years Ending December 31,
2012	$	2,726
2013		1,849
2014		782
2015		135
2016		—
Thereafter		—

Total	$	5,492

•

As of December 31, 2011 we leased space in three buildings with lease terms expiring in 2012, 2014 and 2015. We have also entered into various office equipment leases and automobile leases, the terms of which are typically three years. Annual rent expense for all of our facilities, equipment and automobile leases for the year ended December 31, 2011 was approximately $2.8 million.

•

We lease 30,000 square feet of laboratory and office space in Hayward, California under a master lease that expires in November 2012. This facility is occupied by our Commercial Development, Sales and Marketing, Medical Affairs, Contract Manufacturing, Quality Control and Quality Assurance departments. Effective November 2010, we subleased 9,000 square feet of the facility through November 2012 and effective September 2010, we subleased an additional 4,500 square feet on a month-to-month basis.

•

We lease 6,200 square feet of office space in Ellicott City, Maryland under a lease agreement that expires in October 2015. This facility is occupied by our Product Development and Regulatory Affairs departments.

•

We lease 7,900 square feet of office space in Anaheim, California under a lease agreement that expires in October 2014. This facility is occupied by our Executive, Finance and Administration departments, and serves as our corporate headquarters.

Contingencies

From time to time, we may become involved in claims and other legal matters arising in the ordinary course of business. We are currently not aware of any claims or other legal matters which we believe would have a material adverse effect on our financial position, results of operations or cash flows.

Commitments

We have an agreement with BioVectra to produce the API used in Acthar. The agreement requires the production of a minimum number of kilograms of the Acthar API during the term. The agreement terminated on December 31, 2007 and was extended in January 2008 through December 2010. During the fiscal year ended December 31, 2010, we entered into a new agreement with BioVectra, which terminates 12 months after written notice by either party. Under the terms of the new agreement, we are obligated to purchase a minimum amount of Acthar API and will not purchase in excess of a certain amount of Acthar API per year. We have been in compliance with the terms of our agreement with Bio Vectra.

During the year ended December 31, 2011, we entered into an agreement with CSL Behring LLC, or CSL Behring, to provide potency and toxicity testing on Acthar prior to releasing the product for commercial distribution. Beginning on January 1, 2012, the agreement provides for a maximum number of tests to be performed each year. Tests performed in excess of the maximum are to be paid on a per test basis. We have been in compliance with the terms of our agreement with CSL Behring.

We pay an annual royalty to the prior owner of Acthar equal to one percent (1%) of net sales in excess of $10 million. We also make quarterly payments to Glenridge Pharmaceuticals, LLC under a Royalty Agreement and Release equal to three percent (3%) of net sales. See "Item 3. Legal Proceedings." Royalty expense for the years ended December 31, 2011, 2010 and 2009 was $8.5 million, $4.6 million and $3.4 million, respectively, which is included in Cost of Sales in the accompanying Consolidated Statements of Income.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Publisher FASB
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-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

7. Income Taxes

The components of the income tax expense are as follows (in thousands):


	Years Ended December 31,
	2011			2010			2009
Current:
Federal	$	38,575		$	18,881		$	14,102
State		475			1,450			1,690

	$	39,050			20,331			15,792

Deferred:
Federal		(4,782	)		(2,128	)		(813	)
State		(114	)		1,099			523

		(4,896	)		(1,029	)		(290	)

Total income tax expense	$	34,154		$	19,302		$	15,502

A reconciliation between the U.S. statutory tax rate and our effective tax rate is as follows:


	Years Ended December 31,
	2011			2010			2009
Tax at U.S. statutory rate		35	%		35	%		35	%
State income taxes, net		0.2	%		2.1	%		3.4	%
Change in valuation allowance		—	%		1.7	%		—	%
Orphan drug tax credit		(2.1	)%		—	%		—	%
Other		(3.1	)%		(3.3	)%		(1.6	)%

Effective tax rate		30.0	%		35.5	%		36.8	%

The decrease in our effective income tax rate is due to the Internal Revenue Code, or IRC, Section 199 Income Attributable to Domestic Production Activities deduction which increased to 9% of taxable income for 2011 and 2010 as compared to 6% of taxable income in 2009, the reduction in our state income tax rate because beginning in 2011, California allows for a single apportionment factor and most of our sales are sourced outside of California, and finally, we recorded a tax credit during 2011 for the costs incurred in obtaining the orphan drug designation.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amount used for income tax purposes, as well as net operating loss and tax credit carryforwards. Significant components of our deferred tax assets are as follows (in thousands):


	Years Ended December 31,
	2011			2010
Deferred tax assets:
Net operating loss carryforwards	$	2,502		$	2,856
Research and development credits		379			351
Sales-related reserves		12,018			7,553
Other, net		3,543			2,757

Total deferred tax assets		18,442			13,517
Valuation allowance		(945	)		(916	)

Net deferred taxes	$	17,497		$	12,601

We recognize valuation allowances on deferred tax assets reported if, based on the weight of the evidence, we believe that it is "more likely than not" that some or all of our deferred tax assets will not be realized. We evaluate deferred tax assets quarterly to assess the likelihood of realization, which is ultimately dependent upon our generating future taxable income. There was no change in our valuation allowance in 2009. Our valuation allowance increased by $0.9 million in 2010 and $29,000 in 2011. This allowance was associated with our California net operating losses and research and development tax credits which we do not anticipate to fully utilize and therefore have established a valuation allowance on those deferred tax assets.

At December 31, 2011, we had federal and state net operating loss carryforwards of $4.5 million and $16.0 million, respectively, and federal and California research and development tax credits of $0.4 million and $29,000, respectively. All federal net operating loss carryforwards are subject to annual limitations as a result of federal ownership change limitations, and will be available from 2011 through 2018, under those limitations.

The federal and state net operating loss carryforwards and the federal research and development credit carryforwards expire at various dates beginning in the years 2012 through 2018, if not utilized. In addition, as of December 31, 2011, the 1994—2010 tax years remain subject to examination in the U.S. and various state tax jurisdictions due to net operating losses that are being carried forward. The Company is currently undergoing Federal and California exams, however the Company does not believe that such exams will have a material adverse effect on the consolidated financial statements.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


	Years Ended December 31,
	2011			2010
Balance at beginning of year	$	1,243		$	922
(Decrease) / increase of unrecognized tax benefits taken in prior years		(676	)		87
Increase of unrecognized tax benefits related to current year		707			234

Balance at end of year	$	1,274		$	1,243

The unrecognized tax benefits, if recognized in full, would reduce our income tax expense by $1.3 million. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of tax expense. For the years ended December 31, 2011, 2010 and 2009, interest and penalties were recorded for unrecognized tax benefits of $11,000, $166,000 and $36,000, respectively. As of December 31, 2011 and 2010, our accrual for interest and penalties on any unrecognized tax benefits was $126,000 and $204,000, respectively. We do not expect unrecognized tax benefits to change significantly over the next 12 months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Defined Contribution Plan	12 Months Ended
Defined Contribution Plan	Dec. 31, 2011
Defined Contribution Plan [Abstract]
Defined Contribution Plan	8. Defined Contribution Plan We have a defined-contribution savings plan under Section 401(k) of the Internal Revenue Code of 1986, as amended, covering substantially all full-time U.S. employees. Participating employees may contribute up to 60% of their eligible compensation up to the annual Internal Revenue Service contribution limit. This plan allows for discretionary contributions by us. Employer matching contributions for the years ended December 31, 2011, 2010 and 2009 were $0.3 million, zero and zero, respectively.

Quarterly Results Of Operations

12 Months Ended

Dec. 31, 2011

Quarterly Results Of Operations [Abstract]

Quarterly Results of Operations

9. Quarterly Results of Operations (unaudited)

The following table sets forth a summary of our unaudited quarterly operating results for each of the last eight quarters in the period ended December 31, 2011. We have derived this data from our unaudited consolidated interim financial statements that, in our opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with our financial statements and notes thereto included elsewhere in this report. The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period (in thousands, except earnings per share).

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)


	Quarter Ended
	12/31/2011		9/30/2011		6/30/2011		3/31/2011
Net sales	$	75,535	$	59,821	$	45,980	$	36,833
Cost of sales		4,013		3,718		2,856		1,872
Income tax expense		11,240		10,846		6,669		5,399
Net income		31,641		22,852		13,874		11,224
Net income applicable to common shareholders		31,641		22,852		13,874		11,224
Net income per share applicable to common shareholders:
Basic	$	0.50	$	0.37	$	0.22	$	0.18
Diluted	$	0.48	$	0.35	$	0.21	$	0.17

	Quarter Ended
	12/31/2010		9/30/2010		6/30/2010		3/31/2010
Net sales	$	29,296	$	31,274	$	28,316	$	26,244
Cost of sales		1,723		2,292		2,000		1,998
Income tax expense		4,527		5,423		5,109		4,242
Net income		6,417		11,520		9,282		7,852
Net income applicable to common shareholders		6,417		11,520		9,282		7,852
Net income per share applicable to common shareholders:
Basic	$	0.10	$	0.19	$	0.15	$	0.13
Diluted	$	0.10	$	0.18	$	0.14	$	0.12

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Schedule II Valuation And Qualifying Accounts

12 Months Ended

Dec. 31, 2011

Schedule II - Valuation And Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

Years Ended December 31, 2011, 2010 and 2009


	Balance at Beginning of Period		Additions/ (Deductions) Charged to Income		Deductions and Write-Offs		Balance at End of Period
	(In thousands)
Reserves for uncollectible accounts
December 31, 2011	$	25	$	—	$	25	$	—
December 31, 2010	$	77	$	51	$	103	$	25
December 31, 2009	$	62	$	114	$	99	$	77
Reserves for obsolete and excess inventories
December 31, 2011	$	158	$	—	$	158	$	—
December 31, 2010	$	—	$	158	$	—	$	158
December 31, 2009	$	29	$	614	$	643	$	—
Sales-related reserves
December 31, 2011	$	21,511	$	50,658	$	38,050	$	34,119
December 31, 2010	$	14,922	$	38,376	$	31,787	$	21,511
December 31, 2009	$	11,825	$	49,900	$	46,803	$	14,922

All other financial statement schedules are omitted because the information described therein is not applicable, not required or is furnished in the financial statements or notes thereto.

Organization And Summary Of Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2011

Organization And Summary Of Significant Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Cash Equivalents and Short-Term Investments

Cash Equivalents and Short-Term Investments

Inventories

Inventories

We state inventories, net of allowances, at the lower of cost or market value. Cost is determined by the first-in, first-to-expire method.

Property and Equipment

Property and Equipment

Goodwill and Purchased Technology, net

Goodwill and Purchased Technology, net

Commitments and Contingencies

Commitments and Contingencies

Income Taxes

Income Taxes

Revenue Recognition

Revenue Recognition

International sales of our products are immaterial.

Net Sales

The following table sets forth our net sales for the years ended December 31, 2011, 2010 and 2009, respectively (in thousands):


	Years Ended December 31,
	2011		2010		2009
Revenue	$	268,827	$	154,806	$	138,220

Less sales reserves:
Provision for Medicaid rebates		46,481		37,159		40,814
Provision for chargebacks		142		106		5,029
Provision for Coverage Gap Discount		348		—		—
Provision for Tricare rebates		1,691		1,202		3,530
Co-payment assistance and other		1,996		1,208		527

Total sales reserves		50,658		39,675		49,900

Net sales	$	218,169	$	115,131	$	88,320

We record net sales after establishing reserves for the following:

•

Medicaid rebates;

•

TRICARE retail program rebates;

•

Medicare Part D Coverage Gap Discount Program rebates;

•

Chargebacks due to other government programs;

•

Questcor-sponsored co-pay assistance programs;

•

Returns, which have historically been immaterial; and

•

Other deductions such as payment discounts.

•

Medicaid Rebates and the National Health Care Legislation

TRICARE Retail Pharmacy Programs

Government Chargebacks

Co-Pay Assistance Programs

We sponsor co-pay assistance programs for Acthar patients which are administered by the Chronic Disease Fund. We account for these co-pay assistance program payments as a reduction to our revenue.

Total Sales-related Reserves

At December 31, 2011 and 2010 sales-related reserves included in the accompanying Consolidated Balance Sheets were as follows (in thousands):


	Years Ended December 31,
	2011		2010
Medicaid rebates	$	29,874	$	17,384
Tricare rebates		4,095		4,125
Coverage Gap Discount Program rebates		100		—
Government chargebacks		40		2
Other discounts		10		—

Total	$	34,119	$	21,511

The following table summarizes the activity in the account for sales-related reserves for Medicaid rebates (in thousands):


	Years Ended December 31,
	2011			2010			2009
Balance at January 1	$	17,384		$	11,070		$	11,406
Actual Medicaid rebate payments for sales made in prior year		(9,104	)		(7,929	)		(8,300	)
Actual Medicaid rebate payments for sales made in current year		(24,887	)		(22,916	)		(32,850	)
Current Medicaid rebate provision for sales made in prior year		—			—			—
Current Medicaid rebate provision for sales made in current year		46,481			37,159			40,814

Balance at December 31	$	29,874		$	17,384		$	11,070

The following table summarizes the activity in the account for sales-related reserves for TRICARE rebates (in thousands):


	Years Ended December 31,
	2011			2010			2009
Balance at January 1	$	4,125		$	3,530		$	—
Actual Tricare rebate payments for sales made in prior year		(642	)		—			—
Actual Tricare rebate payments for sales made in current year		(1,079	)		(607	)		—
Current Tricare rebate provision for sales made in prior year		1			—			99
Current Tricare rebate provision for sales made in current year		1,690			1,202			3,431

Balance at December 31	$	4,095		$	4,125		$	3,530

Share-Based Compensation

Share-Based Compensation

Our share-based compensation plans are discussed further in Note 5. Preferred Stock and Shareholders' Equity.

Segment Information

Segment Information

We have determined that we operate in one business segment.

Subsequent Events

Subsequent Events

Organization and Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2011

Relative share of accounts receivable


	Years Ended December 31,
% of Accounts Receivable	2011			2010
CuraScript SD		100	%		99	%
Other customers		—	%		1	%

		100	%		100	%

Relative share of gross product sales


	Years Ended December 31,
% of Gross Product Sales	2011			2010			2009
CuraScript SD		100	%		99	%		99	%
Other customers		—	%		1	%		1	%

		100	%		100	%		100	%

Net sales


	Years Ended December 31,
	2011		2010		2009
Revenue	$	268,827	$	154,806	$	138,220

Less sales reserves:
Provision for Medicaid rebates		46,481		37,159		40,814
Provision for chargebacks		142		106		5,029
Provision for Coverage Gap Discount		348		—		—
Provision for Tricare rebates		1,691		1,202		3,530
Co-payment assistance and other		1,996		1,208		527

Total sales reserves		50,658		39,675		49,900

Net sales	$	218,169	$	115,131	$	88,320

Sales-related reserves


	Years Ended December 31,
	2011		2010
Medicaid rebates	$	29,874	$	17,384
Tricare rebates		4,095		4,125
Coverage Gap Discount Program rebates		100		—
Government chargebacks		40		2
Other discounts		10		—

Total	$	34,119	$	21,511

Activity in the account for sales-related reserves


	Years Ended December 31,
	2011			2010			2009
Balance at January 1	$	17,384		$	11,070		$	11,406
Actual Medicaid rebate payments for sales made in prior year		(9,104	)		(7,929	)		(8,300	)
Actual Medicaid rebate payments for sales made in current year		(24,887	)		(22,916	)		(32,850	)
Current Medicaid rebate provision for sales made in prior year		—			—			—
Current Medicaid rebate provision for sales made in current year		46,481			37,159			40,814

Balance at December 31	$	29,874		$	17,384		$	11,070

Net income per share, basic and diluted


	Years Ended December 31,
	2011		2010		2009
Net income applicable to common shareholders	$	79,591	$	35,071	$	26,629

Shares used in computing net income per share applicable to common shareholders:
Basic		62,498		62,112		64,196
Effect of dilutive potential common shares:
Stock options		3,497		2,614		2,050
Restricted stock		15		15		11

Diluted		66,010		64,741		66,257

Net income per share applicable to common shareholders:
Basic	$	1.27	$	0.56	$	0.41

Diluted	$	1.21	$	0.54	$	0.40

Amounts excluded from the computation of diluted net income per share applicable to common shareholder

Years Ended December 31,

2011

2010

2009

Stock options

309

2,548

TRICARE [Member]

Activity in the account for sales-related reserves


	Years Ended December 31,
	2011			2010			2009
Balance at January 1	$	4,125		$	3,530		$	—
Actual Tricare rebate payments for sales made in prior year		(642	)		—			—
Actual Tricare rebate payments for sales made in current year		(1,079	)		(607	)		—
Current Tricare rebate provision for sales made in prior year		1			—			99
Current Tricare rebate provision for sales made in current year		1,690			1,202			3,431

Balance at December 31	$	4,095		$	4,125		$	3,530

Balance Sheet Details (Tables)

12 Months Ended

Dec. 31, 2011

Balance Sheet Details [Abstract]

Inventories, net of allowances


	Years Ended December 31,
	2011		2010
Raw materials	$	4,841	$	3,065
Finished goods		385		819
Less allowance for excess and obsolete inventories		—		(158	)

	$	5,226	$	3,726

Property and Equipment


	Years Ended December 31,
	2011			2010
Laboratory equipment	$	8		$	8
Manufacturing equipment		740			692
Office equipment, furniture and fixtures		2,169			1,971
Leasehold improvements		946			420

		3,863			3,091
Less accumulated depreciation and amortization		(1,893	)		(2,219	)

	$	1,970		$	872

Short-Term Investments And Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2011

Short-Term Investments And Fair Value Measurements [Abstract]

Summary of cash equivalents and short-term investments

December 31, 2011
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Loss)			Estimated Fair Value
Cash equivalents	$	6,423	$	—	$	—		$	6,423

Short-term investments:
Certificates of deposit	$	2,240	$	2	$	—		$	2,242
Corporate bonds		66,378		30		(69	)		66,339
U.S. Government-sponsored enterprises		42,764		6		(16	)		42,754
Municipal bonds		10,343		5		(3	)		10,345

	$	121,725	$	43	$	(88	)	$	121,680

December 31, 2010
Cash equivalents	$	22,258	$	—	$	—		$	22,258

Short-term investments:
Certificates of deposit	$	9,080	$	39	$	(4	)	$	9,115
Corporate Bonds		15,427		9		(5	)		15,431
Government-sponsored enterprises		41,983		12		(27	)		41,968
Municipal bonds		6,808		3		(1	)		6,810

	$	73,298	$	63	$	(37	)	$	73,324

Amortized cost and fair value of available-for-sale securities


	Amortized Cost		Estimated Fair Value
Due in one year or less	$	66,656	$	66,643
Due after one through two years		55,069		55,037

Total available-for-sale securities	$	121,725	$	121,680

Available-for-sale securities in an unrealized loss position, not deemed to be other-than-temporarily impaired


	Less Than 12 Months					12 Months or Greater
	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Certificates of deposit	$	—		$	480	$	—		$	—
Corporate bonds		(35	)		22,258		(34	)		10,263
U.S. Government-sponsored enterprises		(2	)		6,148		(14	)		23,981
Municipal bonds		(3	)		4,000		—			—

Total	$	(40	)	$	32,886	$	(48	)	$	34,244

Assets measured at fair value on a recurring basis


	Basis of Fair Value Measurements
	Balance at December 31, 2011		Level 1		Level 2		Level 3
Cash equivalents	$	6,423	$	6,423	$	—	$	—
Certificates of deposit		2,242		2,242		—		—
Corporate bonds		66,339		66,339		—		—
Government-sponsored enterprises		42,754		42,754		—		—
Municipal bonds		10,345		10,345		—		—

Total	$	128,103	$	128,103	$	—	$	—

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Purchased Technology And Goodwill (Tables)

12 Months Ended

Dec. 31, 2011

Purchased Technology And Goodwill [Abstract]

Purchased technology


	Years Ended December 31,
	2011			2010
Purchased technology	$	4,386		$	4,386
Less accumulated amortization		(1,608	)		(1,312	)

Total	$	2,778		$	3,074

Goodwill


	Years Ended December 31,
	2011			2010
Goodwill	$	1,023		$	1,023
Less accumulated amortization (pre-2011 amortization) and impairment		(1,023	)		(724	)

Total	$	—		$	299

- Definition

Tabular disclosure of goodwill by reportable segment and in total. Disclosure details may include, but are not limited to, the carrying amount of goodwill, goodwill acquired during the year, goodwill impairment losses recognized, goodwill written-off due to the sale of a business unit, goodwill not yet allocated, and any other changes to goodwill.

+ References + Details

Preferred Stock And Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2011

Employee stock purchase plan activity


	Number of Shares			Weighted- Average Fair Value
Available at December 31, 2010		264,760
Purchases		(90,650	)	$	14.98
Shares added to the Plan		600,000

Available at December 31, 2011		774,110

Summary of stock option activity


	Stock Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
						(In years)		(In thousands)
Outstanding at December 31, 2010		6,286,436		$	4.43
Granted		1,460,100			16.89
Exercised		(1,991,857	)		2.62
Forfeited or expired		(290,889	)		10.69

Outstanding at December 31, 2011		5,463,790		$	8.08		7.47	$	183,077,408

Options vested and expected to vest at December 31, 2011		5,457,692		$	8.07		7.47	$	182,905,670

Exercisable at December 31, 2011		2,915,136		$	4.71		6.49	$	107,494,919

Weighted average fair value of equity instruments


	Weighted Average Fair Value
	2011		2010		2009
Stock options	$	16.89	$	7.15	$	5.45
ESPP Purchases		14.98		4.91		3.76
Restricted Stock		27.28		5.02		—

Share-based compensation expense


	Years Ended December 31,
	2011		2010		2009
Selling and marketing	$	4,236	$	952	$	719
General and administrative		1,884		1,832		1,699
Research and development		1,206		955		623
Total share-based compensation expense		7,326		3,739		3,041

Employee Stock Purchase Plan [Member]

Stock option valuation assumption


	Years Ended December 31,
	2011			2010			2009
Weighted average volatility		53	%		54	%		71	%
Risk-free interest rate		0.1	%		0.1	%		0.1-0.3	%
Expected term (in years)		0.25			0.25			0.25
Expected dividend yield		—	%		—	%		—	%

Restricted stock activity


	Number of Shares			Weighted- Average Fair Value
Non-vested shares at December 31, 2010		30,000		$	5.02
Granted		31,762		$	27.28
Vested		(7,500	)	$	5.02
Forfeited or expired		—			—

Non-vested shares at December 31, 2011		54,262		$	18.05

Stock Options [Member]

Stock option valuation assumption


	Years Ended December 31,
	2011			2010			2009
Volatility		61	%		65	%		83	%
Interest rate		0.5-2.4			1.0-2.1			1.9-2.2
Forfeiture rate		0.22	%		11.95	%		11.95	%
Expected term (in years)		3.4			4.4			4.3
Expected dividend yield		—			—			—

Indemnifications, Commitments And Contingencies (Tables)

12 Months Ended

Dec. 31, 2011

Indemnifications, Commitments And Contingencies [Abstract]

Future annual minimium payments under operating leases


Years Ending December 31,
2012	$	2,726
2013		1,849
2014		782
2015		135
2016		—
Thereafter		—

Total	$	5,492

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Components of the income tax expense


	Years Ended December 31,
	2011			2010			2009
Current:
Federal	$	38,575		$	18,881		$	14,102
State		475			1,450			1,690

	$	39,050			20,331			15,792

Deferred:
Federal		(4,782	)		(2,128	)		(813	)
State		(114	)		1,099			523

		(4,896	)		(1,029	)		(290	)

Total income tax expense	$	34,154		$	19,302		$	15,502

Reconciliation between U.S. statutory tax rate and effective tax rate


	Years Ended December 31,
	2011			2010			2009
Tax at U.S. statutory rate		35	%		35	%		35	%
State income taxes, net		0.2	%		2.1	%		3.4	%
Change in valuation allowance		—	%		1.7	%		—	%
Orphan drug tax credit		(2.1	)%		—	%		—	%
Other		(3.1	)%		(3.3	)%		(1.6	)%

Effective tax rate		30.0	%		35.5	%		36.8	%

Significant components of deferred tax assets


	Years Ended December 31,
	2011			2010
Deferred tax assets:
Net operating loss carryforwards	$	2,502		$	2,856
Research and development credits		379			351
Sales-related reserves		12,018			7,553
Other, net		3,543			2,757

Total deferred tax assets		18,442			13,517
Valuation allowance		(945	)		(916	)

Net deferred taxes	$	17,497		$	12,601

Reconciliation of unrecognized tax benefits


	Years Ended December 31,
	2011			2010
Balance at beginning of year	$	1,243		$	922
(Decrease) / increase of unrecognized tax benefits taken in prior years		(676	)		87
Increase of unrecognized tax benefits related to current year		707			234

Balance at end of year	$	1,274		$	1,243

Quarterly Results Of Operations (Tables)

12 Months Ended

Dec. 31, 2011

Quarterly Results Of Operations [Abstract]

Quarterly Financial Information (Unaudited)


	Quarter Ended
	12/31/2011		9/30/2011		6/30/2011		3/31/2011
Net sales	$	75,535	$	59,821	$	45,980	$	36,833
Cost of sales		4,013		3,718		2,856		1,872
Income tax expense		11,240		10,846		6,669		5,399
Net income		31,641		22,852		13,874		11,224
Net income applicable to common shareholders		31,641		22,852		13,874		11,224
Net income per share applicable to common shareholders:
Basic	$	0.50	$	0.37	$	0.22	$	0.18
Diluted	$	0.48	$	0.35	$	0.21	$	0.17

	Quarter Ended
	12/31/2010		9/30/2010		6/30/2010		3/31/2010
Net sales	$	29,296	$	31,274	$	28,316	$	26,244
Cost of sales		1,723		2,292		2,000		1,998
Income tax expense		4,527		5,423		5,109		4,242
Net income		6,417		11,520		9,282		7,852
Net income applicable to common shareholders		6,417		11,520		9,282		7,852
Net income per share applicable to common shareholders:
Basic	$	0.10	$	0.19	$	0.15	$	0.13
Diluted	$	0.10	$	0.18	$	0.14	$	0.12

Schedule II Valuation And Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2011

Schedule II - Valuation And Qualifying Accounts [Abstract]

Valuation And Qualifying Account


	Balance at Beginning of Period		Additions/ (Deductions) Charged to Income		Deductions and Write-Offs		Balance at End of Period
	(In thousands)
Reserves for uncollectible accounts
December 31, 2011	$	25	$	—	$	25	$	—
December 31, 2010	$	77	$	51	$	103	$	25
December 31, 2009	$	62	$	114	$	99	$	77
Reserves for obsolete and excess inventories
December 31, 2011	$	158	$	—	$	158	$	—
December 31, 2010	$	—	$	158	$	—	$	158
December 31, 2009	$	29	$	614	$	643	$	—
Sales-related reserves
December 31, 2011	$	21,511	$	50,658	$	38,050	$	34,119
December 31, 2010	$	14,922	$	38,376	$	31,787	$	21,511
December 31, 2009	$	11,825	$	49,900	$	46,803	$	14,922

Organization And Summary Of Significant Accounting Policies (Narrative) (Details)	12 Months Ended				23 Months Ended	36 Months Ended	52 Months Ended
	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($) years days	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2009	Dec. 31, 2011 USD ($)	Dec. 31, 2011 USD ($)
Estimated useful life, minimum, years \| years		3
Estimated useful life, maximium, years \| years		7
Total comprehensive income		$ 79,500,000	$ 35,100,000	$ 26,300,000
Deferred tax liability not recognized		1,300,000				$ 1,300,000	$ 1,300,000
Unrecognized tax benefits, income tax penalties and interest expense		11,000	166,000	36,000
Unrecognized tax benefits, income tax penalties and interest accrued		126,000	204,000			126,000	126,000
Percentage of estimated liability covered by sales reserve					100.00%
Unrecognized compensation cost related to unvested stock options		$ 11,800,000				$ 11,800,000	11,800,000
Weighted average vesting period, years \| years		2.4
TRICARE [Member]
Sales reserve for rebates				$ 3,500,000
CuraScript SD [Member]
Payment terms, days \| days		30
Maximum [Member]
Rebate amount, as a percentage of average manufacturer price						110.00%
Days after quarter, rebate invoices received \| days		90
Minimum [Member]
Rebate amount, as a percentage of average manufacturer price						100.00%
Days after quarter, rebate invoices received \| days		60
Previous [Member] \| Medicaid [Member]
Rebate amount, as a percentage of average manufacturer price		110.00%
Previous [Member] \| Veterans Administration [MEMBER]
Rebate per vial			20,535
As Amended [Member] \| Medicaid [Member]
Rebate amount, as a percentage of average manufacturer price		100.00%
As Amended [Member] \| Veterans Administration [MEMBER]
Rebate per vial	$ 8,500	$ 5,528	5,670
Reduction [Member] \| Veterans Administration [MEMBER]
Rebate per vial			$ 14,865
Multiple Sclerosis And Nephrotic Syndrome [Member] \| Medicare [Member]
Percentage of sales		25.00%
Acthar [Member]
Number of indications that are approved for treatment		19
Number of indications that generate substantially all of net sales		3
Maximum treatment age of infantile spasms		2
Free drugs, value contributed							$ 124,000,000
Number of specialty pharmacies that distribute		12

Organization And Summary Of Significant Accounting Policies (Relative Share Of Accounts Receivable ) (Details)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Percentage of accounts receivable	100.00%	100.00%
CuraScript SD [Member]
Percentage of accounts receivable	100.00%	99.00%
Other Customers [Member]
Percentage of accounts receivable		1.00%

Organization And Summary Of Significant Accounting Policies (Relative Share Of Gross Product Sales ) (Details)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Percentage of gross product sales	100.00%	100.00%	100.00%
CuraScript SD [Member]
Percentage of gross product sales	100.00%	99.00%	99.00%
Other Customers [Member]
Percentage of gross product sales		1.00%	1.00%

Organization And Summary Of Significant Accounting Policies (Net Sales) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenue									$ 268,827	$ 154,806	$ 138,220
Provision for chargebacks									142	106	5,029
Co-payment assistance and other									1,996	1,208	527
Total sales reserves									50,658	39,675	49,900
Net sales	$ 75,535	$ 59,821	$ 45,980	$ 36,833	$ 29,296	$ 31,274	$ 28,316	$ 26,244	218,169	115,131	88,320
Medicaid [Member]
Provision for rebates									46,481	37,159	40,814
Coverage Gap Discount Program [Member]
Provision for rebates									348
TRICARE [Member]
Provision for rebates									$ 1,691	$ 1,202	$ 3,530

Organization And Summary Of Significant Accounting Policies (Sales-Related Reserves) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Government chargebacks	$ 40	$ 2
Other discounts	10
Total	34,119	21,511
Medicaid [Member]
Rebates	29,874	17,384
TRICARE [Member]
Rebates	4,095	$ 4,125
Coverage Gap Discount Program [Member]
Rebates	$ 100

Organization And Summary Of Significant Accounting Policies (Sales-Related Reserves) (Details) - Medicaid [Member] - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Actual rebate payments for sales made in prior year	$ (9,104)	$ (7,929)	$ (8,300)
Actual rebate payments for sales made in current year	(24,887)	(22,916)	(32,850)
Current rebate provision for sales made in prior year
Current rebate provision for sales made in current year	$ 46,481	$ 37,159	$ 40,814

Organization And Summary Of Significant Accounting Policies (Sales-Related Reserves) (Details) - TRICARE [Member] - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Actual rebate payments for sales made in prior year	$ (642)
Actual rebate payments for sales made in current year	(1,079)	$ (607)
Current rebate provision for sales made in prior year	1		99
Current rebate provision for sales made in current year	$ 1,690	$ 1,202	$ 3,431

Organization And Summary Of Significant Accounting Policies (Net Income Per Share, Basic And Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Organization And Summary Of Significant Accounting Policies [Abstract]
Net income applicable to common shareholders	$ 31,641	$ 22,852	$ 13,874	$ 11,224	$ 6,417	$ 11,520	$ 9,282	$ 7,852	$ 79,591	$ 35,071	$ 26,629
Basic shares used in computing net income per share applicable to common shareholders									62,498	62,112	64,196
Effect of dilutive potential common shares, stock options shares used in computing net income per share applicable to common shareholders									3,497	2,614	2,050
Effect of dilutive potential common shares, restricted stock shares used in computing net income per share applicable to common shareholders									15	15	11
Diluted shares used in computing net income per share applicable to common shareholders									66,010	64,741	66,257
Earnings per share basic, applicable to common shareholders	$ 0.50	$ 0.37	$ 0.22	$ 0.18	$ 0.10	$ 0.19	$ 0.15	$ 0.13	$ 1.27	$ 0.56	$ 0.41
Earnings per share diluted, applicable to common shareholders	$ 0.48	$ 0.35	$ 0.21	$ 0.17	$ 0.10	$ 0.18	$ 0.14	$ 0.12	$ 1.21	$ 0.54	$ 0.40

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 36, 37, 38
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 5
-Section 03
-Paragraph 20

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 7
-Paragraph 18

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 21
-Article 9

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.21)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6920599&loc=d3e1252-109256

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=6945512&loc=d3e4984-109258

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04.23)
-URI http://asc.fasb.org/extlink&oid=6879574&loc=d3e536633-122882

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 5
-Section 03
-Paragraph 19

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e565-108580

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

+ Details

- Definition

The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

+ References + Details

- Definition

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6920599&loc=d3e1448-109256

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Weighted-Average Number of Common Shares Outstanding
-URI http://asc.fasb.org/extlink&oid=6528421

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Organization And Summary Of Significant Accounting Policies (Amounts Excluded From The Computation Of Diluted Net Income Per Share Applicable To Common Shareholder) (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Organization And Summary Of Significant Accounting Policies [Abstract]
Stock options excluded from computation of diluted net income per share	82	309	2,548

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Balance Sheet Details (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Balance Sheet Details [Abstract]
Total depreciation and amortization expense on equipment	$ 0.7	$ 0.2	$ 0.2

Balance Sheet Details (Inventories, Net Of Allowances) (Details) - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Balance Sheet Details [Abstract]
Raw materials	$ 4,841	$ 3,065
Finished goods	385	819
Less allowance for excess and obsolete inventories		(158)
Total inventory	$ 5,226	$ 3,726

Balance Sheet Details (Property And Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Property and equipment	$ 3,863	$ 3,091
Less accumulated depreciation and amortization	(1,893)	(2,219)
Total	1,970	872
Leasehold Improvements [Member]
Property and equipment	946	420
Laboratory Equipment [Member]
Property and equipment	8	8
Manufacturing Equipment [Member]
Property and equipment	740	692
Office Equipment, Furniture And Fixtures [Member]
Property and equipment	$ 2,169	$ 1,971

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

Short-Term Investments And Fair Value Measurements (Narrative) (Details)	Dec. 31, 2011 USD ($) months	Dec. 31, 2010 USD ($)
Average contractual maturity of short term investments, in months \| months	14
Goodwill		$ 299,000
Prior Period Transactions [Member]
Goodwill	$ 0

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Short-Term Investments And Fair Value Measurements (Summary Of Cash Equivalents And Short-Term Investments) (Details) - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Available-for-sale Securities, Estimated Fair Value	$ 121,680	$ 73,324
Available-for-sale Securities, Amortized Cost	121,725	73,298
Available-for-sale Securities, Gross Unrealized Gain	43	63
Available-for-sale Securities, Gross Unrealized (Loss)	(88)	(37)
Cash Equivalents [Member]
Cash equivalents	6,423	22,258
Certificates Of Deposit [Member]
Available-for-sale Securities, Estimated Fair Value	2,242	9,115
Available-for-sale Securities, Amortized Cost	2,240	9,080
Available-for-sale Securities, Gross Unrealized Gain	2	39
Available-for-sale Securities, Gross Unrealized (Loss)		(4)
Corporate Bonds [Member]
Available-for-sale Securities, Estimated Fair Value	66,339	15,431
Available-for-sale Securities, Amortized Cost	66,378	15,427
Available-for-sale Securities, Gross Unrealized Gain	30	9
Available-for-sale Securities, Gross Unrealized (Loss)	(69)	(5)
U.S. Government-Sponsored Enterprises [Member]
Available-for-sale Securities, Estimated Fair Value	42,754	41,968
Available-for-sale Securities, Amortized Cost	42,764	41,983
Available-for-sale Securities, Gross Unrealized Gain	6	12
Available-for-sale Securities, Gross Unrealized (Loss)	(16)	(27)
Municipal Bonds [Member]
Available-for-sale Securities, Estimated Fair Value	10,345	6,810
Available-for-sale Securities, Amortized Cost	10,343	6,808
Available-for-sale Securities, Gross Unrealized Gain	5	3
Available-for-sale Securities, Gross Unrealized (Loss)	$ (3)	$ (1)

Short-Term Investments And Fair Value Measurements (Amortized Cost And Fair Value Of Available-For-Sale Securities) (Details) $ in Thousands	Dec. 31, 2011 USD ($)
Short-Term Investments And Fair Value Measurements [Abstract]
Due in one year or less, Amortized Cost	$ 66,656
Due after one through two years, Amortized Cost	55,069
Total available-for-sale securities, Amortized Cost	121,725
Due in one year or less, Estimated Fair Value	66,643
Due after one through two years, Estimated Fair Value	55,037
Total available-for-sale securities, Estimated Fair Value	$ 121,680

Short-Term Investments And Fair Value Measurements (Available-For-Sale Securities In An Unrealized Loss Position, Not Deemed To Be Other-Than-Temporarily Impaired) (Details) $ in Thousands	Dec. 31, 2011 USD ($)
Estimated Fair Value, Less Than 12 Months	$ 32,886
Estimated Fair Value, 12 Months or Greater	34,244
Gross Unrealized Losses, Less Than 12 Months	(40)
Gross Unrealized Losses, 12 Months or Greater	(48)
Certificates Of Deposit [Member]
Estimated Fair Value, Less Than 12 Months	480
Corporate Bonds [Member]
Estimated Fair Value, Less Than 12 Months	22,258
Estimated Fair Value, 12 Months or Greater	10,263
Gross Unrealized Losses, Less Than 12 Months	(35)
Gross Unrealized Losses, 12 Months or Greater	(34)
U.S. Government-Sponsored Enterprises [Member]
Estimated Fair Value, Less Than 12 Months	6,148
Estimated Fair Value, 12 Months or Greater	23,981
Gross Unrealized Losses, Less Than 12 Months	(2)
Gross Unrealized Losses, 12 Months or Greater	(14)
Municipal Bonds [Member]
Estimated Fair Value, Less Than 12 Months	4,000
Gross Unrealized Losses, Less Than 12 Months	$ (3)

Short-Term Investments And Fair Value Measurements (Assets Measured At Fair Value On A Recurring Basis) (Details) $ in Thousands	Dec. 31, 2011 USD ($)
Assets, Fair Value Disclosure, Recurring	$ 128,103
Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure, Recurring	128,103
Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure, Recurring
Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure, Recurring
Cash Equivalents [Member]
Assets, Fair Value Disclosure, Recurring	6,423
Cash Equivalents [Member] \| Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure, Recurring	6,423
Cash Equivalents [Member] \| Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure, Recurring
Cash Equivalents [Member] \| Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure, Recurring
Certificates Of Deposit [Member]
Assets, Fair Value Disclosure, Recurring	2,242
Certificates Of Deposit [Member] \| Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure, Recurring	2,242
Certificates Of Deposit [Member] \| Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure, Recurring
Certificates Of Deposit [Member] \| Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure, Recurring
Corporate Bonds [Member]
Assets, Fair Value Disclosure, Recurring	66,339
Corporate Bonds [Member] \| Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure, Recurring	66,339
Corporate Bonds [Member] \| Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure, Recurring
Corporate Bonds [Member] \| Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure, Recurring
U.S. Government-Sponsored Enterprises [Member]
Assets, Fair Value Disclosure, Recurring	42,754
U.S. Government-Sponsored Enterprises [Member] \| Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure, Recurring	42,754
U.S. Government-Sponsored Enterprises [Member] \| Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure, Recurring
U.S. Government-Sponsored Enterprises [Member] \| Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure, Recurring
Municipal Bonds [Member]
Assets, Fair Value Disclosure, Recurring	10,345
Municipal Bonds [Member] \| Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure, Recurring	10,345
Municipal Bonds [Member] \| Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure, Recurring
Municipal Bonds [Member] \| Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure, Recurring

Purchased Technology And Goodwill (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Purchased Technology And Goodwill [Abstract]
Purchased technology, amortization expense	$ 0.3	$ 0.3	$ 0.3

Purchased Technology And Goodwill (Purchased Technology) (Details) - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Purchased Technology And Goodwill [Abstract]
Purchased technology	$ 4,386	$ 4,386
Less accumulated amortization	(1,608)	(1,312)
Total	$ 2,778	$ 3,074

Purchased Technology And Goodwill (Goodwill) (Details) - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Purchased Technology And Goodwill [Abstract]
Goodwill	$ 1,023	$ 1,023
Less accumulated amortization (pre-2011 amortization) and impairment	$ (1,023)	(724)
Total		$ 299

- Definition

+ References

+ Details

Preferred Stock And Shareholders' Equity (Narrative) (Details)	1 Months Ended	12 Months Ended			36 Months Ended
	May 31, 2011 shares	Dec. 31, 2011 USD ($) years hours months $ / shares shares	Dec. 31, 2010 USD ($) shares	Dec. 31, 2009 USD ($) shares	Dec. 31, 2011 USD ($) years hours months shares	May 29, 2008 shares	Apr. 30, 2008 months	Feb. 29, 2008 shares	May 31, 2004
Preferred stock, shares authorized		7,500,000	7,500,000		7,500,000
Stock repurchase program, number of shares authorized to be repurchased						6,500,000		7,000,000
Payments for repurchase of common stock \| $		$ 11,453,000		$ 21,086,000
Stock repurchase program, remaining number of shares authorized to be repurchased		4,300,000			4,300,000
Employee stock purchase plan, shares available for issuance, including previously issued		3,500,000			3,500,000
Employee stock purchase plan, eligibility requirements, hours worked per week minimum \| hours		20			20
Employee Stock Purchase Plan, eligibility requirements, months worked per calendar year minimum \| months		5			5
Employee stock purchase plan, maximum earnings withheld		15.00%			15.00%
Employee stock purchase plan, purchase price per share, percentage of fair market value		85.00%			85.00%
Stock issued during period, shares, employee stock purchase plans		90,650	149,127	145,488
Vesting period, years		four
Stock options, maximum term, years \| years		10			10
Stock options, increase of shares of common stock authorized for issuance	3,500,000
Share-based compensation arrangement by share-based payment award, number of shares authorized		9,750,000			9,750,000
Stock options granted following appointment as a Non-Employee Director		25,000			25,000
Stock options granted for continued service upon reappointment annually		15,000			15,000
Stock options granted to members of one or more committees of the board of directors		10,000			10,000
Stock options granted to chairs of one or more committees		7,500			7,500
Common stock, shares authorized for grant		1,250,000			1,250,000
Shares of common stock reserved for issuance		6,015,705			6,015,705
Share-based compensation arrangement by share-based payment award, options, exercises in period, total intrinsic value \| $		$ 57,500,000	$ 3,700,000	$ 2,600,000
Restricted Common Stock, Shares granted					61,762
Restricted Stock or Unit Expense \| $		163,000	50,000	11,000
Total fair value of awads vested \| $		115,000	$ 144,000	$ 67,000	$ 115,000
Unamortized compensation costs related to restricted stock awards \| $		$ 815,000			$ 815,000
Restricted stock, vesting period years \| years		4			4
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized \| $		$ 12,600,000			$ 12,600,000
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition in years \| years		2.4
Expected dividend yield \| $		$ 0
Stock Repurchase Program [Member]
Shares of common stock repurchased		9,200,000			9,200,000
Payments for repurchase of common stock \| $		$ 48,100,000
Common stock acquired, average cost per share \| $ / shares		$ 5.21
Outside Of Stock Repurchase Program [Member]
Shares of common stock repurchased		6,200,000			6,200,000
Payments for repurchase of common stock \| $		$ 30,400,000
Common stock acquired, average cost per share \| $ / shares		$ 4.93
Cumulative Common Stock Repurchased [Member]
Payments for repurchase of common stock \| $		$ 78,500,000
Previous [Member]
Employee stock purchase plan, maximum offering period in months \| months							27
Stock option grant, exercise price, percentage of fair market value									85.00%
As Amended [Member]
Employee stock purchase plan, maximum offering period in months \| months							6
Stock option grant, exercise price, percentage of fair market value									100.00%

Preferred Stock And Shareholders' Equity (Employee Stock Purchase Plan Activity) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Preferred Stock And Shareholders' Equity [Abstract]
Available at beginning of period	264,760
Purchases	(90,650)	(149,127)	(145,488)
Shares added to the Plan	600,000
Available at end of period	774,110	264,760
Purchases, Weighted-Average Fair Value	$ 14.98

- Definition

Number of shares issued during the period as a result of an employee stock purchase plan.

+ References + Details

Preferred Stock And Shareholders' Equity (Stock Option Valuation Assumption) (Details) - Employee Stock Purchase Plan [Member] - years	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Weighted average volatility	53.00%	54.00%	71.00%
Risk-free interest rate	0.10%	0.10%
Expected term (in years)	0.25	0.25	0.25
Expected dividend yield
Maximum [Member]
Risk-free interest rate			0.30%
Minimum [Member]
Risk-free interest rate			0.10%

Preferred Stock And Shareholders' Equity (Summary Of Stock Option Activity) (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2011 USD ($) years $ / shares shares	Dec. 31, 2010 $ / shares shares	Dec. 31, 2009 $ / shares
Preferred Stock And Shareholders' Equity [Abstract]
Outstanding at beginning of period \| shares	6,286,436
Granted \| shares	1,460,100
Exercised \| shares	(1,991,857)
Forfeited or expired \| shares	(290,889)
Outstanding at end of period \| shares	5,463,790	6,286,436
Options vested and expected to vest at end of period \| shares	5,457,692
Exercisable at end of period \| shares	2,915,136
Outstanding beginning of period, Weighted-Average Exercise Price \| $ / shares	$ 4.43
Granted, weighted-average exercise price \| $ / shares	16.89	$ 7.15	$ 5.45
Exercised, weighted-average exercise price \| $ / shares	2.62
Forfeited or expired, weighted-average exercise price \| $ / shares	10.69
Outstanding end of period, weighted-average exercise price \| $ / shares	8.08	$ 4.43
Options vested and expected to vest at end of period, weighted-average exercise price \| $ / shares	8.07
Exercisable at end of period, weighted-average exercise price \| $ / shares	$ 4.71
Outstanding at end of period, weighted-average remaining contractual term, years \| years	7.47
Options vested and expected to vest at end of period, weighted-average remaining contractual term, years \| years	7.47
Exercisable at end of period, weighted-average remaining contractual term, years \| years	6.49
Outstanding at end of period, aggregate intrinsic value \| $	$ 183,077,408
Options vested and expected to vest at end of period, aggregate intrinsic value \| $	182,905,670
Exercisable at end of period, aggregate intrinsic value \| $	$ 107,494,919

Preferred Stock And Shareholders' Equity (Restricted Stock Activity) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Preferred Stock And Shareholders' Equity [Abstract]
Non-vested shares at beginning of period	30,000
Granted	31,762
Vested	(7,500)
Non-vested shares at end of period	54,262	30,000
Non-vested shares at beginning of period, Weighted-Average Fair Value	$ 5.02
Granted, Weighted-Average Fair Value	27.28	$ 5.02
Vested, Weighted-Average Fair Value	5.02
Non-vested shares at end of period, Weighted-Average Fair Value	$ 18.05	$ 5.02

- Definition

The weighted average fair value of nonvested awards on equity-based plans excluding option plans (for example, phantom stock or unit plan, stock or unit appreciation rights plan, revenue or profit achievement stock award plan) for which the employer is contingently obligated to issue equity instruments or transfer assets to an employee who has not yet satisfied service or performance criteria necessary to gain title to proceeds from the sale of the award or underlying shares or units.

+ References + Details

Preferred Stock And Shareholders' Equity (Weighted Average Fair Value Of Equity Instruments) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Preferred Stock And Shareholders' Equity [Abstract]
Stock options	$ 16.89	$ 7.15	$ 5.45
ESPP purchases	14.98	4.91	$ 3.76
Restricted stock	$ 27.28	$ 5.02

Preferred Stock And Shareholders' Equity (Stock Option Valuation Assumption) (Details) - Stock Options [Member]	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Volatility	61.00%	65.00%	83.00%
Forfeiture rate	0.22%	11.95%	11.95%
Expected term (in years)	3.4	4.4	4.3
Expected dividend yield
Maximum [Member]
Interest rate	2.40%	2.10%	2.20%
Minimum [Member]
Interest rate	0.50%	1.00%	1.90%

Preferred Stock And Shareholders' Equity (Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Share-based compensation expense	$ 7,326	$ 3,739	$ 3,041
Selling And Marketing Expense [Member]
Share-based compensation expense	4,236	952	719
General And Administrative Expense [Member]
Share-based compensation expense	1,884	1,832	1,699
Research And Development Expense [Member]
Share-based compensation expense	$ 1,206	$ 955	$ 623

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Indemnifications, Commitments And Contingencies (Narrative) (Details)	12 Months Ended
	Dec. 31, 2011 USD ($) years months	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)
Indemnifications, Commitments And Contingencies [Abstract]
Deposit Assets	$ 56,000
Rent expense for facilities and equipment	$ 1,000,000	$ 500,000	$ 1,100,000
Typical lease terms for office equipment and automobile leases, years \| years	3
Rent expense for facilities, equipment and automobiles	$ 2,800,000
Size of laboratory and office space in Hayward, California, square feet	30,000
Area of Hayward, California facility subleased November 2010, square feet	9,000
Area of Hayward, California facility subleased September 2010, square feet	4,500
Size of office space in Ellicott City, Maryland, square feet	6,200
Size of office space in Anaheim, California, square feet	7,900
Duration of new agreement with BioVectra, months \| months	12
Annual royalty to Acthar, based on net sales, percentage	1.00%
Minimum level of net sales needed for Acthar to receive royalty	$ 10,000,000
Quarterly royalty to Glenridge Pharmaceuticals, LLC, percentage	3.00%
Royalty expense	$ 8,500,000	$ 4,600,000	$ 3,400,000

Indemnifications, Commitment And Contingencies (Future Minimium Payments Under Operating Leases) (Details) $ in Thousands	Dec. 31, 2011 USD ($)
Indemnifications, Commitments And Contingencies [Abstract]
Operating Leases, Future Minimum Payments Due, Current	$ 2,726
Operating Leases, Future Minimum Payments, Due in Two Years	1,849
Operating Leases, Future Minimum Payments, Due in Three Years	782
Operating Leases, Future Minimum Payments, Due in Four Years	135
Operating Leases, Future Minimum Payments, Due in Five Years
Thereafter
Total	$ 5,492

Income Taxes (Narrative) (Details) - USD ($)	3 Months Ended								12 Months Ended
Income Taxes (Narrative) (Details) - USD ($)	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Deduction of taxable income, due to Internal Revenue Code, percentage									9.00%	9.00%	6.00%
Increase in valuation allowance									$ 29,000	$ 900,000
Research and development credits	$ 379,000				$ 351,000				379,000	351,000
Reduction of income tax expense	11,240,000	$ 10,846,000	$ 6,669,000	$ 5,399,000	4,527,000	$ 5,423,000	$ 5,109,000	$ 4,242,000	34,154,000	19,302,000	$ 15,502,000
Interest and penalties for unrecognized tax benefits									11,000	166,000	36,000
Accrued interest and penalties on unrecognized tax benefits	126,000				204,000				126,000	204,000
Unrecognized Tax Benefits	1,274,000				$ 1,243,000				1,274,000	$ 1,243,000	$ 922,000
Federal [Member]
Operating Loss Carryforwards	4,500,000								4,500,000
Research and development credits	400,000								400,000
State [Member]
Operating Loss Carryforwards	16,000,000								16,000,000
California [Member]
Research and development credits	$ 29,000								$ 29,000

Income Taxes (Components Of the Income Tax Expense) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income Taxes [Abstract]
Federal income tax expense (benefit)									$ 38,575	$ 18,881	$ 14,102
State income tax expense (benefit)									475	1,450	1,690
Income tax expense (benefit), total									39,050	20,331	15,792
Deferred federal income tax expense (benefit)									(4,782)	(2,128)	(813)
Deferred state income tax expense (benefit)									(114)	1,099	523
Deferred income tax expense (benefit), total									(4,896)	(1,029)	(290)
Total income tax expense	$ 11,240	$ 10,846	$ 6,669	$ 5,399	$ 4,527	$ 5,423	$ 5,109	$ 4,242	$ 34,154	$ 19,302	$ 15,502

- Definition

The component of income tax expense for the period representing amounts paid or payable (or refundable) as determined by applying the provisions of enacted federal tax law to the domestic taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Paragraph Question 1-7

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Current Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6509736

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Current Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6509736

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

+ Details

- Definition

The component of income tax expense for the period representing amounts paid or payable (or refundable) as determined by applying the provisions of enacted state and local tax law to relevant amounts of taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Current Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6509736

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

+ Details

- Definition

The component of total income tax expense for the period comprised of the increase (decrease) during the period in the entity's domestic deferred tax assets and liabilities attributable to continuing operations as determined by applying the provisions of the federally enacted tax law.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 740
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-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 8, 16, 17, 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The component of income tax expense for the period representing the increase (decrease) in the entity's deferred tax assets and liabilities pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

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-Name Accounting Standards Codification
-Topic 740
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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

+ Details

- Definition

The component of total income tax expense for the period comprised of the increase (decrease) in the entity's state and local deferred tax assets and liabilities attributable to continuing operations as determined by applying the provisions of the applicable enacted tax laws.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

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-Name Accounting Standards Codification
-Topic 740
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-Section 50
-Paragraph 9
-Subparagraph (b)
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-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes (Reconciliation Between U.S. Statutory Tax Rate And Effective Tax Rate ) (Details)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income Taxes [Abstract]
Tax at U.S. statutory rate	35.00%	35.00%	35.00%
State income taxes, net	0.20%	2.10%	3.40%
Change in valuation allowance		1.70%
Orphan drug tax credit	(2.10%)
Other	(3.10%)	(3.30%)	(1.60%)
Effective tax rate	30.00%	35.50%	36.80%

Income Taxes (Significant Components Of Deferred Tax Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Abstract]
Net operating loss carryforwards	$ 2,502	$ 2,856
Research and development credits	379	351
Sales-related reserves	12,018	7,553
Other, net	3,543	2,757
Total deferred tax assets	18,442	13,517
Valuation allowance	(945)	(916)
Net deferred taxes	$ 17,497	$ 12,601

Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Abstract]
Balance at beginning of year	$ 1,243	$ 922
(Decrease)/ increase of unrealized tax benefits taken in prior years	(676)	87
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions	707	234
Balance at end of year	$ 1,274	$ 1,243

Defined Contribution Plan (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Defined Contribution Plan [Abstract]
Maximum percentage of eligible compensation allowed for participating employees to contribute to their defined-contribution savings plan	60.00%
Defined-contribution savings plan, employer matching contribution	$ 300,000	$ 0	$ 0

Quarterly Results Of Operations (Quarterly Financial Information ) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Quarterly Results Of Operations [Abstract]
Net sales	$ 75,535	$ 59,821	$ 45,980	$ 36,833	$ 29,296	$ 31,274	$ 28,316	$ 26,244	$ 218,169	$ 115,131	$ 88,320
Cost of sales	4,013	3,718	2,856	1,872	1,723	2,292	2,000	1,998	12,459	8,013	7,017
Income tax expense	11,240	10,846	6,669	5,399	4,527	5,423	5,109	4,242	34,154	19,302	15,502
Net income	31,641	22,852	13,874	11,224	6,417	11,520	9,282	7,852	79,591	35,071	26,629
Net income applicable to common shareholders	$ 31,641	$ 22,852	$ 13,874	$ 11,224	$ 6,417	$ 11,520	$ 9,282	$ 7,852	$ 79,591	$ 35,071	$ 26,629
Basic	$ 0.50	$ 0.37	$ 0.22	$ 0.18	$ 0.10	$ 0.19	$ 0.15	$ 0.13	$ 1.27	$ 0.56	$ 0.41
Diluted	$ 0.48	$ 0.35	$ 0.21	$ 0.17	$ 0.10	$ 0.18	$ 0.14	$ 0.12	$ 1.21	$ 0.54	$ 0.40

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Schedule II Valuation And Qualifying Accounts (Valuation And Qualifying Accounts) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Reserves For Uncollectible Accounts [Member]
Balance at Beginning of Period	$ 25	$ 77	$ 62
Additions/ (Deductions) Charged to Income		51	114
Deductions and Write-Offs	25	103	99
Balance at End of Period		25	77
Reserves For Obsolete And Excess Inventories [Member]
Balance at Beginning of Period	158		29
Additions/ (Deductions) Charged to Income		158	614
Deductions and Write-Offs	158		643
Balance at End of Period		158
Sales-Related Reserves [Member]
Balance at Beginning of Period	21,511	14,922	11,825
Additions/ (Deductions) Charged to Income	50,658	38,376	49,900
Deductions and Write-Offs	38,050	31,787	46,803
Balance at End of Period	$ 34,119	$ 21,511	$ 14,922

Label	Element	Value
Medicaid [Member]
Balance	qcor_Balance	$ 11,406,000
Balance	qcor_Balance	11,070,000
Balance	qcor_Balance	17,384,000
Balance	qcor_Balance	29,874,000
Tricare [Member]
Balance	qcor_Balance
Balance	qcor_Balance	3,530,000
Balance	qcor_Balance	4,125,000
Balance	qcor_Balance	$ 4,095,000